Citadel and TCI run 20 hedge fund managers to earn a whopping $ 65bn

Major profits at Ken Griffin’s Citadel and Sir Christopher Hohn’s TCI have helped 20 top hedge fund managers consistently make significant gains over the last decade last year, even though corporate profits did not go well with the international conference. stock markets.

The top 20 executives, including Izzy Englander’s Millennium Management and Paul Singer’s Elliott Management, earned $ 65.4bn, ahead of. 2020s $ 63.5bn according to a study by LCH Investments. That was their biggest annual profit since the hedge funds funded by Edmond de Rothschild Group began collecting its data in 2010.

A good return on other high incomes comes even a a difficult year more about the $ 4tn hedge fund industry. While the group was pleased with its performance in the early stages of the 2020 epidemic, several market disruptions last year made life difficult.

Hedge shares earned 10.3 percent average, according to the HFR data provider, behind a 27 percent rise in the S&P 500 and a 20 percent increase in the MSCI World index. Years of unemployment have caused many investors to quit the job, and many have instead turned to commercial markets and credit markets.

“The arrival of the Hedge fund in 2021 was very different,” said Rick Sopher, chairman of LCH Investments, adding that overall business profits “were relatively small, especially in comparison with the strong performance of the equity index”.

Of the 20 dollars, Hohn’s $ 44.4bn-in-asset TCI is the biggest dollar, making $ 9.5bn for investors. The fund, which specializes in affiliate programs, accounted for 23.3 percent, saying that people who are well-versed in how they work, are supported by positions in stocks including Brands and Microsoft.

Citadel generated $ 8.2bn, a return of 26.3 percent. The so-called direct investment such as Millennium and Citadel, which operate several business groups, have benefited from a variety of methods and asset classes with their ability to reduce risk quickly in the event of a crisis.

However, several currencies struggled last year, particularly betting on rising and falling prices. As headline indexes soared, more money was left behind because they did not like to have big responsibilities in small mega-cap divisions that led to profits. Money was also to hit while an army of merchants raised the price of some meme items they bet on.

Among those who were hit were a number of so-called Ana and Tiger – supervisors who came out in Tiger Management by Julian Robertson – who also lost out on a recent sale in modern media.

Chase Coleman’s Tiger Global lost $ 1.5bn to investors last year, according to LCH, and dropped 14 to 16 on the list of regular investors for investors. Its hedge fund lost about 7.5 percent, while positions like DoorDash and Pinduoduo fell sharply at the end of the year.

Andreas Halvorsen’s Viking dropped from sixth to eighth after earning $ 1.3bn, while Steve Mandel’s Lone Pine fell from third to sixth with no money for investors, according to LCH.

“Long-term Equity managers often struggle. Shortcuts were difficult, especially in the face of meme stock rallies, and there was a huge fluctuations in the markets,” Sopher said.

TCI profits raised the hedge fund from 13th to nineth in terms of performance, with $ 36.5bn gaining since its inception. Also the rise of the rankings from the fourth to the second phase was Citadel, whose total profits from the start rose to $ 50bn, leaving behind Ray Dalio’s Bridgewater by $ 52.2bn.

England’s Millennium, meanwhile, which made up about 13 percent or $ 6.4bn, rose from seventh to seventh.

Laurence.fletcher@ft.com