Signage for Citadel Funding Group LLC hangs outdoors their workplace in Chicago, Illinois, U.S.
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The world’s prime hedge funds raked in report income final yr amid a resurgence in inventory markets, new evaluation confirmed.
The 20 main fund managers made $67 billion in investor income in 2023, up from the $65 billion recorded through the pandemic-era rally of 2021, in accordance analysis Monday from LCH Investments, a fund of hedge funds.
General, the fund administration trade recorded positive aspects of $218 billion after charges, based on LCH Investments estimates.
The highest funds — recognized as these which have carried out finest in greenback phrases since their inception — accounted for round one-third of annual income final yr, regardless of managing lower than a fifth (19%) of the trade’s property.
Included among the many finest performers have been Christopher Hohn’s TCI, Ken Griffin’s Citadel and Andreas Halvorsen’s Viking.
High 20 managers by 2023 income
| Agency | Property (billion) | Web income since inception (billion) | 2023 income (billion) | Launch yr |
| TCI | $50 | $41.3 | $12.9 | 2004 |
| Citadel | $56.8 | $74 | $8.1 | 1990 |
| Viking | $30.5 | $40.9 | $6 | 1999 |
| Millennium | $61.9 | $56.1 | $5.7 | 1989 |
| Elliott | $62.2 | $47.6 | $5.5 | 1977 |
| DE Shaw | $43.8 | $56.1 | $4.2 | 1988 |
| Lone Pine | $15.9 | $35.6 | $4.2 | 1996 |
| Baupost | $27.4 | $37 | $3.8 | 1983 |
| Pershing Sq. | $17.9 | $18.8 | $3.5 | 2004 |
| SAC/Point72 | $31 | $33 | $3 | 1992 |
| Appaloosa | $17 | $35 | $2.7 | 1993 |
| Farallon | $40.4 | $35.7 | $2.6 | 1987 |
| Och Ziff/Sculptor | $28.7 | $32.2 | $2.3 | 1994 |
| Egerton | $14 | $23.9 | $2.3 | 1995 |
| David Kempner | $37 | $21 | $1.8 | 1983 |
| King Road | $9.5 | $19.5 | $0.9 | 1995 |
| Brevan Howard | $35.6 | $28.5 | $0.4 | 2003 |
| Caxton | $13.4 | $19.5 | $-0.3 | 1983 |
| Bridgewater | $72.5 | $55.8 | $-2.6 | 1975 |
| Soros | N/A | $43.9 | N/A | 1973 |
Supply: LCH Investments
LCH Investments’ director and head of analysis, Brad Amiee, mentioned that the main funds have been buoyed by the inventory market’s “fantastic run” in 2023. Nonetheless, he added that many additionally showcased particularly savvy inventory choice methods.
“You could argue that, since shorting is such a challenging sub-strategy, keeping things long-biased and having a concentrated portfolio of high quality positions has been the way to go,” Amiee told the Financial Times.
TCI, the highest rating fund, recorded investor income of $12.9 billion and ended final yr up 33%, beating the S&P 500’s 24% achieve.
Included in its largest holders have been Alphabet, Canadian Nationwide Railway, Visa and Basic Electrical.
Citadel, which ranked second in 2023, made $8.1 billion in income after bringing in a record-breaking $16 billion in 2022. Its $74 billion in positive aspects since inception rank it as probably the most profitable hedge fund in historical past.
The analysis additionally discovered that the highest 20 funds have made a mixed $755.4 billion in income since inception, properly above the $655.5 billion in whole managed property.
A hedge fund is a restricted partnership of personal traders whose cash is managed by fund managers. Hedge funds are sometimes recognized for investing in larger danger and extra non-traditional property in comparison with mutual funds.
