Meet the 8 hedge fund managers who made the most money in 2016

Ray DalioYouTube / CBS This Morning

It’s no secret that hedge funds have not been doing well.

2016 was an especially rough year for the once mighty kings of Wall Street.

High fees and lackluster returns have forced many investors to pull their money out of hedge funds. The $ 3 trillion industry shrunk by about $ 70 billion last year, the biggest drop since 2009, according to data tracker HFR.

But that doesn’t mean that hedge fund managers, long known to be some of the wealthiest people on Wall Street, are on their way to the poor house.

Forbes has just released its list of the highest-earning hedge fund managers and traders of 2016. And it shows that top hedge funders are doing just fine when it comes to their take home pay.

In fact, the top managers pulled in fortunes, despite the fact that several of them – at least four of the top eight earners – failed to beat the S&P 500 last year, which investors can buy for close to free. (The losing funds were run by billionaires Ray Dalio, Dan Loeb, Ken Griffin and David Tepper. The S&P 500 returned 9.5% in 2016.)

Forbes identifies the earnings of each listee as well as insights about the firm’s performance and background.

We’ve included the top eight hedge funders from the list. As a group, they earned more than $ 6.8 billion. The firms they founded or run manage a combined $ 400 plus billion.

6. David Shaw, founder of D.E. Shaw & Co

Havard University

David Shaw didn’t find his way to Wall Street until after he worked in academia as a computer science professor at Columbia University. That technical background has influenced the way in which his firm, D.E. Shaw & Co, has done business. 

Earnings in 2016: $ 400 million

6. Paul Singer, Elliott Management

Reuters/ Steve Marcus

Paul Singer’s firm, Elliott Management, had an impressive 2016. According to Forbes, the firm secured $ 2.4 billion from outstanding bond payments from the government of Argentina after a 15-year showdown. And the hedge fund also delivered returns of 13% last year after fees.

Earnings in 2016: $ 400 million

6. Daniel Loeb, founder of Third Point

Steve Marcus/Reuters

Dan Loeb founded his activist hedge fund Third Point in 1995. According to Forbes, the firm has “navigated financial markets more deftly than many of [their] battered activist peers over the last few years.” Last year, Third Point’s main fund returned 6.1%.

Earnings in 2016: $ 400 million


See the rest of the story at Business Insider


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