Photographer: Angela Weiss / AFP / Getty Images
Photographer: Angela Weiss / AFP / Getty Images
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Tiger Global Management placed # 1 in a global hedge fund rankings and a massive powerhouse Renaissance Technologies was ousted, another sign that trading conditions favored human stock selection over algorithms.
The industry garnered $ 127 billion last year, with some of the largest companies dominated by human traders making record profits, according to estimates released Monday by LCH Investments, a fund of hedge funds. Chase Coleman’s Tiger Global generated $ 10.4 billion for customers, net of fees and charges Izzy Englander’s Millennium Management was a close second at $ 10.2 billion.
Renaissance, founded by billionaire mathematician Jim Simons, dropped out of the rankings of 20 companies after losing some of his public funds more than 30% last year. In 2019, it was third on LCH’s list, which targets managers with the most total earnings since inception and is designed to favor the largest and oldest hedge funds.
Read More: Hedge Fund Titans Hohn, Mandel Leads $ 178 Billion Years in Profits
The rankings reflect the most prominent theme of a tumultuous year, with hedge funds making or losing vast sums of money as the Covid-19 pandemic devastated the world and central banks unleashed unprecedented incentive to stem the economic carnage. The greatest of all, Ray Dalio’s Bridgewater Associates suffered $ 12.1 billion in losses.
“As they navigate the highly volatile markets of 2020, talented individual managers with vision and flexibility outperformed programmed machines,” LCH Chairman Rick Sopher said in a statement.
His company’s annual survey is just one way of looking at the sector’s profitability, as it can rule out newer or smaller hedge funds that outperformed everyone in the top 20 in percentage terms.
The 20 executives in the rankings oversaw approximately 17% of global hedge fund assets and produced approximately 43% of the $ 1.4 trillion in profits the industry has generated since its inception, according to LCH.
Top 20 Managers Ranked by Earnings in 2020
| Manager | Net profit since inception | 2020 winnings | Year of launch |
|---|---|---|---|
| Tiger Global | 26.5 | 10.4 | 2001 |
| Millennium | 36.0 | 10.2 | 1989 |
| Lonely pine tree | 42.3 | 9.1 | 1996 |
| Viking | 36.6 | 7.0 | 1999 |
| Citadel | 41.8 | 6.2 | 1990 |
| DE Shaw | 37.3 | 5.4 | 1988 |
| Elliott Associates | 33.3 | 5.0 | 1977 |
| TCI | 27.0 | 4.2 | 2004 |
| Egerton | 22.6 | 3.7 | 1995 |
| Brevan Howard | 22.5 | 3.0 | 2003 |
| Farallon | 29.3 | 2.9 | 1987 |
| ZAK / Point72 | 25.9 | 2.5 | 1992 |
| Oh-Ziff / sculptor | 29.8 | 2.3 | 1994 |
| Appaloosa | 28.6 | 1.9 | 1993 |
| King Street Capital | 17.6 | 1.6 | 1995 |
| Baupost | 31.3 | 1.5 | 1983 |
| Paulson & Co. * | 17.8 | -1.2 | 1994 |
| Bridgewater | 46.5 | -12.1 | 1975 |
| Soros Fund Management ** | 43.9 | AFTER | 1973 |
| Moore Capital *** | 18.6 | AFTER | 1990 |
| Top 20 managers | 615.1 | 63.5 | |
| All managers | 1,422 | 127 |
NOTE: Profits are in billions of dollars; * Until June 30, 2020; ** until December 31, 2017; *** Until December 31, 2019. Source: LCH Investments
– With the help of Hema Parmar