Richest Hedge Fund Billionaire Titans 2013
- George Soros $22.9B Soros is founder of the Quantum Fund, long one of the world’s largest hedge funds. In 2011, Soros returned money to his outside investors and changed Soros Fund Management into a family office to manage his personal fortune. It also handles the multibillion-dollar endowments of his philanthropic organizations and investments of his relatives.
- Carl Icahn $19.3 B Birth date: 1936/02/16 Icahn is a diversified investor with holdings in biotech, casinos, information technology and real estate. About half of his fortune is invested in publicly traded companies, including natural gas producer El Paso and auto parts maker Federal Mogul. His closely held assets include a telecommunications company (XO Holdings) and railcars (ACF).
- James Simons Net worth: $11.7 billion The “Quant King” retired from his $20 billion hedge fund firm, Renaissance Technologies, in 2010, but he continues to play a role at the firm and benefit from its funds, particularly the secretive and consistently profitable Medallion. Not all of the firm’s funds, however, had a good year in 2012 and two of its funds actually lost money.
- John Paulson Net worth: $11.2 billion Hedge fund titan John Paulson, who pulled off the greatest trade ever six years ago betting against subprime mortgage securities, is now having to sooth jittery investors after his Paulson Advantage ended 2012 down more than 14%, its second straight year in the red. In December, Morgan Stanley Smith Barney recommended that its advisors pull client money from the fund. However, Paulson’s Enhanced fund returned nearly 20% net of fees last year, while the firm’s Credit Opportunities fund netted 8.4%. Assets under management at Paulson & Co. stand at $18 billion, down from $36 billion in early 2011.
- Steve Cohen Net worth: $9.3 billion Steve Cohen hedge fund SAC Capital paid $618 Million for insider trading probe. The investigation had not stopped Cohen from making money in financial markets. In 2012, his Stamford, Ct., SAC Capital Advisors, which manages $14 billion, posted gross returns in the 25% range. That was not enough for Cohen to deliver a U.S. stock market beating performance for his investors after he charged them his customary steep fees, but a net return of 13% was still better than the vast majority of hedge fund managers.
- David Tepper Net worth: $7 billion Tepper continues to make a good case that he is one of the greatest hedge fund investors ever. While most hedge funds underperformed the U.S. stock market in 2012, Tepper trounced it. His flagship hedge fund posted net returns of about 30% by betting on stocks and other securities at key times. His $15 billion hedge fund firm, Appaloosa Management, has generated average annualized returns of approximately 30% net since inception in 1993. He returned some cash to his investors at the end of 2012.
- Kenneth Griffin Net worth: $4.1 billion Ken Griffin is the founder and manager of Chicago-based hedge fund firm Citadel. After catastrophic year in 2008, Citadel’s hedge funds blew past their high water marks at the end of 2011 and in 2012, as the pair finished up an impressive 25%. Though the firm is best known for its hedge funds, Citadel also houses a growing securities business, which currently accounts for 14% of U.S. consolidated equity volume.
- Paul Tudor Jones II Net worth: $3.6 billion The founder of Tudor Investment Corporation, a hedge fund firm that manages $12 billion. His flagship BVI Global fund, which runs the vast majority of the firm’s assets, recorded a 6.3% net return in 2012. Tudor’s relatively tiny Tensor fund, on the other hand, continued to struggle. After ending 2011 down 10.3%, the fund again failed to finish 2012 in the black, closing the year down 2.2%. Paul Tudor Jones made his first fortune trading cotton on Wall Street before launching his hedge fund
- David Shaw Net worth: $3.4 billion Shaw’s hedge fund firm, D.E. Shaw & Co., continued to perform well in 2012. The firm’s flagship Oculus fund closed the year up 18% net of fees, with the slightly smaller Composite International fund finishing just behind it at 15.6%. Though Shaw is no longer involved in day-to-day operations at D.E. Shaw & Co., the Stanford PhD continues to oversee higher-level decisions affecting the fund manager.
- Eddie Lampert Net worth: $3.1 billion Eddie Lampert purchased a Miami Beach home in March last year for $38.4 million and moved his hedge fund, ESL Investments, to Florida. ESL’s former CFO, Adrian Maizey, remained in Connecticut, where he now runs Rand Group, which provides investment research, operational and technical services to ESL hedge fund .
- Israel Englander Net worth: $3 billion His Millennium Partners hedge fund finished 2012 up 6.4% net of fees. Englander founded Millennium hedge fund in 1990 with $35 million in capital. Today the firm runs $17.8 billion
- Daniel S. Och Net worth: $2.9 billion The CEO of one of the world’s only publicly-traded hedge fund firms. His $21.5 billion Master fund led the way for the firm in 2012, netting an 11.2% return. Och‘s Europe fund and Global Special Investments fund also recorded gains, rising 8.6% and 9.4%, respectively. Assets under management at the firm are up to $33.1 billion. Och got his start at Goldman Sachs with hedge fund titans Eddie Lampert and Thomas Steyer
- John Arnold Net worth: $2.8 billion John Arnold left hedge fund business in May 2012 when he announced he was calling it a career at age 38.
- Stanley Druckenmiller Net worth: $2.8 billion Stanley Druckenmiller closed down his $12 billion hedge fund, Duquesne Capital Management, in August 2010 and returned investors’ money citing frustration with his inability to deliver high returns. Druckenmiller had started Duquesne Capital Management 30 years earlier with $1 million.
- Julian Robertson Net worth: $2.8 billion After originally closing his legendary hedge fund, Tiger Management, in 2000, Julian Robertson became a pioneer in seeding and mentoring handpicked hedge funds, known as Tiger Cubs including hedge fund titans John Griffin, Chase Coleman, Lee Ainslee, Andreas Halvorsen and Chris Shumway.
- Leon Cooperman Net worth: $2.5 billion Leon Cooperman outperformed the vast majority fund managers in 2012, his $6.6 billion hedge fund firm Omega Advisors hedge fund to net returns of more than 25%. Cooperman earned his MBA at Columbia University, Cooperman joined Goldman Sachs, where he rose to the head of the bank’s asset management business. He departed in 1991 to found Omega, his own fund management company.
- Glenn Dubin Net worth: $1.7 billion Dubin’s Highbridge Capital Management’s flagship hedge fund finished up 11% net of fees. The firm’s Long/Short equity fund and Statistical Opportunities funds were also up last year, returning 11% and 5.2% respectively. Named for the oldest bridge in New York City, Dubin founded Highbridge with childhood friend and fellow billionaire Henry Swieca in 1992. The pair sold a majority stake in Highbridge to JP Morgan Chase in 2004 for $1.3 billion. While Swieca departed in 2009, Dubin remains on board as chairman and CEO of the $28 billion hedge fund firm.
- Noam Gottesman Net worth: $1.7 billion After working at Goldman Sachs for a decade, Noam Gottesman left in 1995 to set up hedge fund GLG Partners within Lehman Brothers. The fund became independent in 2000 and went public in 2007. The U.K.’s Man Group took over GLG for $1.6 billion in 2010. Gottesman stepped down as CEO and became non-executive chairman. Now he runs TOMS Capital.
- Stephen Mandel, Jr. Net worth: $1.6 billion Mandel returned to crushing the markets in 2012, with all of his Lone Pine Capital’s hedge funds ending the year up more than 22% net of fees. The firm scored big in 2012 with stakes in fashion retailers like Michael Kors and The Gap. This “Tiger Cub” worked at Mars & Co. and then Goldman Sachs before joining Julian Robertson’s Tiger Management as a consumer analyst. Mandel departed in 1997 to launch his own firm, Lone Pine Capital, named for a mythical Dartmouth pine tree that survived an 1887 lightning strike. The firm currently manages approximately $23 billion across long-only equity funds, hedge funds and a fund of funds.
- James Dinan Net worth: $1.6 billion After a rare down year in 2011, hedge fund manager James Dinan came roaring back in 2012. His York Capital Management’s flagship Multi-Strategy fund posted a solid 13.5% net return on the year, while the firm’s Credit Opportunities fund finished 2012 up 19%. Dinan, a graduate of Wharton and Harvard Business School.
- Michael Hintze Net worth: $1.6 billion Hintze’s hedge fund firm, CQS, dominated the markets in 2012. The fund manager’s flagship Directional Opportunities fund, which Hintze manages personally, returned nearly 36% net of fees last year. Assets under management at CQS now stand at nearly $12 billion. Hintze trained as an engineer and served in the Australian army before entering the world of financial services. He had stints at Goldman Sachs and Credit Suisse
First Boston prior to launching CQS in 1999.
- Alan Howard Net worth: $1.6 billion Launched Brevan Howard Asset Management in 2002 when he and four other Credit Suisse proprietary traders went solo. Assets under management at the Geneva-based hedge fund firm now total $39 billion and the firm continues to hire talent away from banks and is again expanding its operations in the U.S. Howard’s $28 billion Master Fund returned 3.8% net of fees in 2012, after an impressive 12.14% performance in 2011. His partnership group sold a 15% stake in the business to Swiss Re in 2007 for an undisclosed sum.
- Daniel Loeb Net worth: $1.5 billion Dan Loeb is founder and manager of hedge fund Third Point. . Activist hedge fund hunk had a fabulous year in 2012. His flagship hedge fund beat the U.S. stock market, which most hedge funds failed to do, with a 21.2% net return. His smaller leveraged fund was one of the best-performing hedge funds in 2012. The New York investor has enjoyed big years before, but now he is managing $10 billion. He made money betting on Greek sovereign debt and on a couple of activist positions. Notorious for firing off harsh letters lambasting corporate executives and board members .
- Chase Coleman Net worth: $1.4 billion Young hedge fund hot shot Chase Coleman cooled off a touch in 2012, but his Tiger Global hedge fund, which he co-manages with Feroz Dewan, still beat the U.S. stock market and most other hedge funds out there. Coleman extended his impressive winning streak, finishing a third straight year with a net return in excess of 20%.
- Marc Lasry Net Worth: $1.3 billion Marc Lasry made headlines during the 2011 debt crisis, when he met with lawmakers from both parties to urge a compromise on the debt ceiling. An enthusiastic Democratic supporter, Lasry is now fundraising for Barack Obama’s 2012 campaign, after doing the same for Hillary Clinton in the 2008 Democratic primaries.
- Louis Bacon New Worth: $1.3 billion Bacon recently announced plans to return $2 billion in assets to investors in order to help his hedge fund firm, Moore Capital Management, “be more nimble in navigating these markets.” At the time, Bacon’s funds were up an average 0.3% and up a “tolerable” 6% over the past 12 months. Still, Bacon fretted about opportunities, describing the euro zone as a “potential disaster area” and blaming interventions in currency, credit and sovereign bonds for producing jumpy markets. A noted conservationist, Bacon has set aside close to 200,000 acres through 10 easements, including 424 acres on Robins Island in New York’s Peconic Bay..
- Thomas Steyer Net worth: $1.4 billion The founder of $19 billion hedge fund Farallon Capital Management retired at the end of 2012 and sold his stake in the hedge fund firm to his partners. Steyer’s last year at Farallon was decent enough, with his flagship hedge fund returning 11.42% net, though the performance trailed the U.S. stock market.
- Andreas Halvorsen Net worth: $1.3 billion Former Norwegian Navy Seal co-founded Viking Global Investors, an $18 billion hedge fund firm. His flagship fund was up 12.8% net in 2012, while the long-only fund (which Halvorsen closed to new investors last year) was up an impressive 23%. Among some of his biggest positions last year were News Corp., Visa and hedge fund favorite Apple. He is one of the so-called Tiger Cubs who used to work for hedge fund legend Julian Robertson.
- David Harding Net worth: $1.3 billion London’s “Wizard of Winton” tried to join Wall Street after graduating, but all the American investment banks he applied to turned him down. He took a trainee position at a small broker, then became a futures trader at one of the U.K.’s first futures funds. In 1987 he co-founded a quant-driven firm, AHL, which sold to Man Group. In 1997 he founded his second firm, Winton, his middle name, now the world’s biggest managed futures firm. The firm’s main fund, however, was down in 2012 and the firm saw some capital outflows. It now manages about $26 billion.
- Paul Singer Net worth: $1.3 billion Founder of hedge fund firm Elliott Management, which oversees $21 billion in assets. Its two main funds returned more than 12% in 2012. Singer’s hedge fund has been waging a high-profile battle with Argentina over defaulted bonds, going so far in 2012 as to convince the government of Ghana to at one point take possession of an Argentine naval vessel.
- David Einhorn Net worth: $1.25 billion The founder and head of hedge fund firm Greenlight Capital has delivered annualized returns north of 19% since inception in 1996, but in 2012 his hedge fund trailed the U.S. stock market as a big bet on Apple soured near the end of the year. He has been actively pushing Apple to return capital to shareholders, going so far as to sue the company over corporate governance matters in February.
- Bill Ackman Net worth: $1.2 billion Pershing Square Capital Management founder and hedge fund manager Bill Ackman. Hedge fund hot shot Ackman is running successful hedge fund with $12 billion. AUM. The activist hedge fund hunk is master at using media and marketing to make headlines and manipulate markets. . So do rival hedge fund titans Daniel Loeb and Carl Icahn who challenged him with Loeb announcing a long position in Herbalife and Icahn questioning Ackman’s investment skills all together in an epic CNBC showdown.
- Richard Chilton Jr. Net Worth: $1.2 billion The son of an advertising executive, Chilton grew up in New Jersey and studied finance and economics at Alfred University. After graduation, his first job was at Merrill Lynch, where he worked in mergers and acquisitions. In 1985, Chilton began investing for Alliance Capital Management and later worked for fellow billionaire Herbert Allen at Allen & Co. Chilton founded Chilton Investment Co. in 1992 and serves as chairman and CEO of the firm, which now manages approximately $6 billion in assets. Chilton was up 8.6% net of fees on the year through late July 2012.
- Philip Falcone Net worth: $1.2 billion Former Harvard hockey player made billions shorting subprime, then blew billions on LightSquared, a controversial attempt to convert satellite radio frequencies into a new cellular service. LightSquared filed for bankruptcy and he’s been sued by the SEC, but fortune holding up after LightSquared bonds recovered and stock in his publicly traded Harbinger Group doubled.
- Nelson Peltz Net worth: $1.2 billion Corporate raider turned activist hedge fund investor. Got his start in the 1960s driving a food delivery truck for his family’s business, which he helped turn into a $150 million public company in 15 years. He later moved into the booming world of leveraged buyouts and in 1985 transformed his Triangle Industries by buying National Can using high-yield bonds, selling it three years later for an $830 million profit. In 1997 he acquired Snapple from Quaker Oats for $300 million and sold it to Cadbury Schweppes for $1.5 billion. In 2005, he started Trian Partners, a $5 billion hedge fund that takes minority stakes in companies it believes are undervalued. Trian gets the job done by taking a seat on the boards of its portfolio companies and then offers up changes (sometimes insisting on them) to improve their bottom lines. Trian’s performance was flat in 2012 after a being up 7% in 2011. The firm launched a new fund late last year that it expects will reach some $2 billion in capital. H.J. Heinz is among Trian’s more recent success stories.
- Thomas Sandell Net worth: $1.2 billion Sandell’s flagship hedge fund fund, Castlerigg Master Investments, returned 15.5% net of fees in 2012. The market-beating performance was accompanied by net capital inflows, pushing assets under management back up to the $1 billion mark. A former Swedish badminton prodigy, Sandell attended college outside Stockholm before spending two years in Paris covering European equities for Atlantic Finance. He then earned an MBA at Columbia and joined Bear Stearns in 1988, where he was a colleague of famed investment banker Ace Greenberg.
- Thomas Sandell Net worth: $1.2 billion Sandell’s flagship hedge fund fund, Castlerigg Master Investments, returned 15.5% net of fees in 2012. The market-beating performance was accompanied by net capital inflows, pushing assets under management back up to the $1 billion mark. A former Swedish badminton prodigy, Sandell attended college outside Stockholm before spending two years in Paris covering European equities for Atlantic Finance. He then earned an MBA at Columbia and joined Bear Stearns in 1988, where he was a colleague of famed investment banker Ace Greenberg. While at Bear Stearns, Sandell worked on billionaire Kirk Kerkorian’s bid for Chrysler before departing to found fund manager Sandell Asset Management in 1998.
- Seth Klarman Net worth: $1.05 billion A value investor known for avoiding leverage and holding cash. Seth Klarman’s Boston-based Baupost Group has seen its assets under management balloon in recent years to $26 billion as new money flowed in. Klarman, 55, has tried to keep a low-profile. Baupost posted a net return of 7.6% in 2012, trailing the U.S. stock market.
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