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BOSTON – The world’s 20 best hedge funds earned $ 63.5 billion for clients in 2020, setting a record for the past ten years during a chaotic time when technology-oriented stocks suffered a dramatic setback from a pandemic-induced sale, shows the data from LCH Investments.
As a group, the most successful executives earn half of the $ 127 billion all hedge funds made last year, LCH Investments, a fund of mutual funds that track returns and are part of the Edmond de Rothschild group, reported.
Despite the pandemic that caused a historic sell-off in the stock market in March, closed large sectors of the economy and slashed millions of jobs, the top 20 hedge funds returned $ 59.3 billion in 2019. This was despite the fact that 2020 was not as profitable as the previous year for hedge funds as a whole, which dropped earnings of $ 178 billion in 2019.
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According to data from Hedge Fund Research, the average hedge fund returned 11.6% in 2020, lagging behind the S&P 500 index’s gain of 16%.
‘The net profits generated by the top 20 executives for their investors for $ 63.5 billion were the highest in a decade. In that sense, 2020 was the year of the hedge fund, ”said Rick Sopher, chairman of LCH, in a statement.
Keith Rabois, general partner of Founders Fund LLC, speaks during a television interview with Bloomberg Technology in San Francisco, California, USA, on Friday, February 22, 2019. The 20 best global hedge funds earn $ 63.5 billion for clients in
Last year’s biggest earners include Chase Coleman’s Tiger Global, who earned $ 10.4 billion, Israel England’s Millennium, who earned $ 10.2 billion, and Steve Mandel’s Lone Pine with $ 9.1 billion. Andreas Halvorsen’s Viking Global Investors earned $ 7.0 billion and Ken Griffin’s Citadel earned $ 6.2 billion, according to LCH data.
Ray Dalio’s Bridgewater Associates, founded in 1975, has held $ 46.5 billion since its inception in the No. 1 position, even after a terrible 2020 during which LCH data shows that Dalio has $ 12.1 billion.
George Soros’s Soros Fund Management, which no longer manages money for outside clients, followed the No. 2 spot, followed by Mandel, Griffin and executives at DE Shaw, who rounded out the top five performers of all time.
In data, only Dalio and John Paulson’s Paulson & Co., which made billions in home market commitments during the financial crisis, lost money.
Jim Simons’ Renaissance Technologies, which is often one of the world’s most successful funds due to its Medallion portfolio returns, is among the top 20 performers after the funds it offers to outsiders fell between 20% and 30% last year has.
“The conditions favored man over the machine and it was notable that Renaissance Technologies, a machine-driven driver, fell out of the top 20,” Sopher said.