Ray Dalio Isn’t the Highest Paid Hedge Fund Manager in 2011

Forbes declared that Ray Dalio was the highest paid hedge fund manager in 2011. We disagree. If you are paying capital gains taxes on your income, what you earned isn’t really your earned income, it is capital gains. I don’t think Ray Dalio is going to pay 36% of his “$3 billion income” as tax, so stop treating capital gains as earned income. Yes, we know hedge fund managers also pay a 15% capital gains tax on some portion of their earned income and they are willing to donate millons to Mitt Romney’s super PAC to protect their interests. But, even the yellow dog knows that hedge fund manager’s performance fees are earned income.

BRIDGEWATER ASSOCIATES

Forbes and other publications have been doing this for years though. Since they pretend that a hedge fund manager’s personal investment gains are part of his “earned-income” we are going to pretend that entrepreneurs and business owners are hedge fund managers. Our calculations show that the highest paid hedge fund manager in 2011 was Facebook’s Mark Zuckerberg. Mark Zuckerberg returned around 100% to his investors in 2011 and personally made $14 billion. One of his investors was Tiger Global’s Chase Coleman. Chase Coleman was also among the best performing hedge fund managers in 2011 because his funds have a large stake in Facebook. His stake in Facebook helped him to deliver a 45% return in 2011.

Journalists are obsessed with ranking hedge fund managers because readers are interested in these unscientific rankings. We have a better ranking system. We rank hedge fund managers based on their long stock picks that are revealed in their 13F filings. This way every hedge fund manager gets an equal shot at ranking high. Hedge fund managers who rank higher on a consistent basis really deserve more attention than billionaire hedge fund managers who shift their focus on retaining their wealth and maximizing their management fees. You can check out our rankings on our hedge fund page.

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

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

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

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!