Hedge Fund Net Profit Rankings: 20 Funds that Total $482 Billion with Bridgewater at No. 1
At the end of December of 2017, the ranking of the “Hedge Funds with the Highest Net Profit” was announced. Bridgewater Associates, led by Mr. Ray Dalio, came in first place with $49.7 billion. In second place was George Soros’ Soros Fund Management ($49.3 billion) while Ken Griffin’s Citadel ($28.6 billion) takes the third spot. The top 20 funds totaled a net profit of $482 billion and their total assets summed to $514.7 billion.
Lone Pine Capital, King Street Capital Management, and Viking Global Investors achieved the best results from 2017.
The ranking was published in “Great Money Manager”, a report created by LCH Investments in December of 2017.
The Monopoly in the United States and the United Kingdom
Below are the top 20 hedge funds that have the highest net profits along with the names of their portfolio managers and the value of their net profits since their establishment.
20th TCI Fund Management (UK), Christopher Hohn, $14.2 billion
19th Caxton Associates (UK) Bruce Kovner / Andrew Law, $14.7 billion
18th Egerton Capital (UK), John Armitage, $14.7 billion
17th King Street Capital Management (USA), Brian Higgins / Francis Biondi, $15.7 billion
16th Brevan Howard (USA), Alan Howard, $17.9 billion
15th Paulson & Company (USA), John Paulson $18.1 billion
14th Moore Capital Management (USA), Louis Bacon Moore, $18.4 billion
12th SAC Capital / Point72 (USA), Steve Cohen, $21.1 billion
11th Farallon Capital Management (UK), Tom Stayer / Andrew Spokes, $21.4 billion
10th Eliot Management (USA), Paul Singer, $24.3 billion
9th Appaloosa Management (USA), David Tepper, $25.4 billion
8th Viking Global Investors (USA), Andreas Halvorsen, $26 billion
7th Och-Ziff Capital Management (USA), Daniel Och, $ 26 billion
6th Baupost Group (UK) Seth Klarman, $27 billion
5th D. E. Shaw Group (USA), (multiple managers), $27.1 billion
4th Lone Pine Capital (USA), Stephen Mandel, $27.2 billion
3rd Citadel (USA), Ken Griffin, $28.6 billion
2nd Soros Fund Management (USA), George Soros / Multiple Managers, $43.9 Billion
1st Bridgewater Associates (USA), Ray Dalio, $49.7 billion
Egerton Capital and TCI Fund Management Enter the Top 20 for the First Time
As the year of establishment is different for every fund, at the time of this summary, Soros Fund Management had been established for 48 years, while Bridgewater Associates had been established for 42 years. The longer a fund has existed, the easier it is for its net profit to increase.
Looking at the results from 2017 alone, the top three funds were from Lone Pine Capital ($5 billion), King Street Capital Management ($4.2 billion) and Viking Global Investors ($4 billion) which changes the overall rankings greatly. In terms of total operational assets, Bridgewater Associates, which operates with a huge difference of $ 119.9 billion, is ranked first with Millennial in second ($35.5 billion) and Och-Ziff (31.9 billion dollars) in third.
Egerton Capital, which was established in 1995, and TCI Fund Management, which was established in 2004, have entered the top 20, although there were few changes from the rankings of the previous year.
Equity is favorable – Are micro-funds continuing to decrease?
According to data from Hedge Fund Research, the return value on hedge funds as a whole in 2017 was 8.5%. Private equity funds including the long-short and value types stood at 13.2%, which marked the highest levels in the past 4 years. (Article: Financial Times, January 21, 2018).
Rick Sofer, the chairman of LCH Investments, looked over the data from 2017 when the stock market was booming, and found that for Viking Global Investors, Lone Pine Capital, TCI Fund Management, Egerton Capital, and others, managers who “emphasized the equity market had positive results”.
Meanwhile, macro fund growth has been stagnant at 4% with prolonged low interest rates and low volatility hampering growth. Paul Tudor Jones, founder of the Tudor Investment Corporation, temporarily closed its own discretionary macro fund citing the need to “rebuild” while John Burbank, CIO of Passport Capital, also closed its macro fund.
Cambridge Associates Joe Marenda said that even if we assume that the interest rates could benefit a portfolio manager, “in discretionary macro, I would expect the large funds to continue to have a difficult time.” (Article: Bloomberg, January 8, 2018). (Kotoko Allen, a Freelance writer living in the UK)
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