Pay for Hedge Fund Managers Falls 35%, Top 6 Average Just $1.7B

BRIDGEWATER ASSOCIATES“Compensation for the highest-paid U.S. hedge-fund managers plunged 35 percent in 2011 to $14.4 billion after the European sovereign debt crisis pushed the industry to its second-worst year ever,” reports Bloomberg.

While hedge funds posted an average loss of over 5% last year, the average pay has declined even more sharply. “Average pay for the 25 top earners was $576 million last year, down from $883 million in 2010, according to an annual ranking published by AR Magazine. In 2009, the figure stood at $1.1 billion,” writes Bloomberg.

Here are the top six earning hedge fund managers:

1. The top paid earner on the list was Ray Dalio. His Bridgewater Associates had a fund that returned 25% through the end of November, netting Dalio roughly $3.9 billion. Dalio beat the odds by using a macro strategy, focused on economic trends. The fund “profited last year by predicting global economic headwinds would trigger a flight by other investors to safer assets such as U.S. Treasuries and German bunds.”

2. Billionaire Carl Icahn came in second. He made an estimated $2.5 billion last year through his Icahn Capital. Bloomberg reports, “Icahn, who returned all outside money in his hedge funds to clients last April, profited from his investment in El Paso Corp. after Kinder Morgan Inc. agreed to buy the natural-gas pipeline company.” Icahn returned 35% in 2011.

3. Jim Simons of Renaissance Technologies ranked third after earning $2.1 billion in 2011. The fund was up almost 35% through December 23rd. Simons uses complex algorithms to exploit even the smallest inefficiencies in the market. One of his funds, the Medallion Fund, takes that philosophy to an entirely new level by employing high frequency trading, executing trades in a matter of seconds sometimes.

4. Hedge fund manager Ken Griffin of Citadel LLC came in fourth with an estimated pay of $700 million. Griffin uses a combination of advanced computer code and complex financial algorithms to make his call. Also in 2011, Griffin cleared the high water mark after having had sustained major losses during the financial crises. He ended up with returns over 20% last year.

5. Steve Cohen was fifth. He earned an estimated $585 million last year from his hedge fund, SAC Capital. The flagship fund was up roughly 8% through the end of November. Cohen uses a combination of fundamental and quantitative analysis to make his picks. Last year may not have been stellar but Cohen has an enviable track record, returning nearly 30% over the past 20 years.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!