Top 25 Hedge Fund Managers

The top two, James Simons of Renaissance Technologies and T.Boone Pickens Jr of BP Capital Management made $1.5bn and $1.4bn in 2005. “These are staggering numbers,” said Alpha editor Michael Peltz in announcing its fifth-annual list of Top 25 earners. “It took $130 million to make the list.”

For those who want to follow the money in the hedge fund industry, this list marks the first time two fund managers have earned more than $1bn. Rounding out the top five were hedge fund legend George Soros of Soros Fund Management with $840m, SAC Capital’s Steven Cohen with $550m and Paul Tudor Jones of Tudor Investment at $500m.

The highest-ranking UK managers were GLG Partners’ co-founders Noam Gottesman and Pierre LaGrange, with $150m apiece. Activists were prominently placed. Timothy Barakett and David Slager of Atticus Capital were 14th and 20th on the list with $200m and $150m respectively. Dan Loseb, the US activist with the acerbic pen, tied for 20th with $150m.

Hedge funds have had a surge in pay amid the explosive growth the industry has produced. There are roughly 8,000 funds with $1.2 trillion in assets. Hedge fund managers on average, make 2% of assets under management and 20% of the profit. Super-successful managers charge even more. Simons, the No. 1 earner last year, charges a 5% management fee and 44% of profits, Alpha’s Peltz says.

Alex Akesson
Contributing Writer
HedgeCo.Net
Email: [email protected]

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