Hedge fund boss makes more per hour than you do in a year

Discussion in 'Wall St. News' started by dealmaker, May 30, 2018.

  1. dealmaker

    dealmaker

    Business

    Hedge fund boss makes more per hour than you do in a year
    By Carleton English

    May 30, 2018 | 4:54pm | Updated

    [​IMG]
    Hedge fund manager James Simons AFP/Getty Images
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    Last year, hedge-fund tycoon James Simons made $194,000 — an hour, that is.

    The former math professor who heads Rennaissance Technologies earned $1.7 billion in 2017, making him the highest-earning hedge-fund manager for the third year straight, according to an annual survey by Institutional Investor’s Alpha magazine.

    Simons edged out Appaloosa Management’s David Tepper, who earlier this month shelled out $2.2 billion in cash to buy the Carolina Panthers. Tepper earned $1.5 billion in 2017 as his fund gained 13 percent, more than doubling his personal haul of $700 million in 2016.

    Doing the math, Tepper’s daily earnings work out to $4.1 million, or $171,000 an hour.

    In all, the top 25 highest-earning hedgies collectively made $15.4 billion last year, averaging more than $600 million each. That makes the compensation of CEOs like Goldman Sachs’ Lloyd Blankfein — who raked in $24 million last year — look like peanuts.

    Top hedgies last year got a 40-percent bump in their earnings, compared to the $11 billion they earned in 2016.

    Emboldened by surging corporate profits and optimism about Trump’s tax cuts, investors piled back into hedge funds in 2017, pouring in $30 billion after yanking more than $100 billion in 2016, according to eVestment.

    Collectively hedge funds gained 8.6 percent in 2017, according to the HFRI Fund Weighted Composite Index — up from 5.6 percent in 2016. The surge was in part due to the 21.8 percent gain in the S&P 500.

    Taking the third spot was Ken Griffin of Citadel, who earned $1.4 billion as the firm’s three main funds each posted gains of roughly 13 percent.

    A hedgie’s haul didn’t necessarily reflect his fund’s performance. Bridgewater Associates’ Ray Dalio grabbed the fourth spot on the list with earnings of $1.3 billion even though two of the firm’s funds delivered “anemic” returns of 1.2 percent, while its All Weather strategy fund gained 13.1 percent.

    Falling just short of hitting the billion-dollar mark at spot number five was Millennium Management’s Israel Englander, who earned $975 million last year.

    To arrive at the hedgies’ earnings, Institutional Investor calculates the manager’s gains on their own invested capital as well as their split of fee revenue — both management and performance fees.

    https://nypost.com/2018/05/30/hedge...urce=nypbusinesstwitter&utm_medium=SocialFlow
     
    elitenapper likes this.
  2. fan27

    fan27

    Well, you know the saying....."It's good work if you can get it."
     
    dealmaker likes this.