Hedge Fund Articles

Hedge Fund Managers Among World’s Richest

The coveted list is here! Forbes magazine has named the World’s Richest, with 1,125 billionaires making the list… the most ever. Warren Buffet took the title of World’s Richest Man, with a fortune of $62 billion. Bill Gates was dethroned for the first time in 13 years, with assets equaling $58 billion.Not surprisingly, hedge fund gurus are intertwined throughout the list, from Quantum Hedge Fund founder George Soros, worth $9 billion, to Clinton contributor Marc Lasry of Avenue Capital, worth $1.5 billion.

Not quite at Soros status, Steven Cohen of Greenwich, CT, is estimated to be worth $6.8 billion. He started his fund, SAC Capital in 1992 with $25 million in assets. Today, his 9 funds manage around $14 billion.

Also based in Greenwich are Ray Dalio of Bridgewater Associates and Paul Tudor Jones III of Tudor Investment Corp. Dalio started his hedge fund in 1975, and now manages $150 billion in assets, contributing to his $4 billion personal fortune. Tudor Jones launched his fund in 1980, and made millions when he predicted the stock market crash in 1987.

James Simons comes in at $5.5 billion, thanks to his hedge fund, Renaissance Technologies. He believes in high fees and high returns. His management fee is 5%, while his performance fee is 44%. This is far above the normal rate of 2/20, but investors in his fund don’t seem to mind.

Daniel Och of the famous Och-Ziff hedge fund is sitting pretty on the list with a net worth of $3.6 billion. He started his hedge fund with a $100 million initial investment from the 3 Ziff brothers (who also made the list), and now manages $33 billion.

Tied at $3.5 billion are Bruce Kovner of Caxton Global Investments and Stanley Druckenmiller of Duquesne Captial Management. Druckenmiller was the right hand man of Soros when they “broke” the British pound in 1992. Kovner started his fund in 1983, and has since netted returns of 25% annually.

Also making the cut are David Shaw of D.E. Shaw & Co. and David Tepper of Appaloosa Management. Both men have amassed fortunes of $2 billion. Louis Bacon of Moore Capital and Philip Falcone of Harbinger Captial Partners are each worth $1.7 billion.

John Arnold, 34, made the list of this years youngest billionaires. Arnold formerly traded oil for Enron. He now runs the hedge fund Centaurus Energy, and is worth an estimated $1.5 billion.

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