The Hedge Fund Masters: Personalities that Create Successful Hedge Funds

A hedge fund is an alternative investment which utilizes pooled funds and implements various strategies to obtain active returns for their investors. A hedge fund manager refers to an individual who makes the big decisions and manages the operations of a particular hedge fund.

While managing a hedge fund can be an attractive career opportunity because it can be highly profitable, a hedge fund manager must first have enough capitalization, a solid investment strategy, a competitive advantage, a reliable marketing and sales plan, as well as a robust risk management strategy in order to be successful in this field. Hedge fund management firms are typically owned by hedge fund managers who are responsible for the portfolio, and these managers are then entitled to a huge sum of the profits that the hedge fund earns. But now it is also possible to start a successful hedge fund without solid investment experience. Our solution helps prospective hedge fund owners find reliable successful hedge fund strategy managers and legally copy their trading strategy.

LCH Investments, a London-based fund of funds which is a also a subsidiary of Edmond de Rothschild Capital Holdings Limited, released in 2017 a list of the Top 20 Most Successful Managers for 2016. This list takes into account the net gains of hedge fund managers all over the world since the inception of their hedge funds. Below are the top seven managers who create the most successful hedge funds.

Collectively, these hedge fund managers have generated over $200 billion in profits since the inception of their funds, and they manage assets valued at over $275 billion. Furthermore, in 2016, these fund managers have generated returns of $10.6 billion.

7. Daniel Ochs

Daniel Och runs Och-Ziff Capital Management, which is a publicly traded hedge fund firm that oversees $33.5 billion worth of assets. His net gains in 2016 hits $1.1 billion, making his total net gains since the inception of the hedge fund in 2014 reach $23.1 billion. Despite seeing billions of dollars in assets flow out of Och-Ziff in 2016 and 2017 because of a corruption scandal in Africa, he still managed to be in the list of the most successful fund managers. The hedge fund firm paid more than $412 million to address the Foreign Corrupt Practices Act charges filed by US regulators and prosecutors. His current net worth stands at $3.2 billion.

6. David Tepper

David Tepper, the President and Founder of Appaloosa Management, generated net gains of $0.7 billion in 2016—making his net gains since the inception of the hedge fund in 1993 hit $23.5 billion. His Miami Beach-based firm currently manages assets worth $17 billion and has been consistently returning money to its investors in recent years. Tepper is arguably one of the greatest managers of his generation, and his net worth currently stands at $11 billion.

5. Ken Griffin

Ken Griffin is the Founder and CEO of the Chicago-based hedge fund firm Citadel LLC, which manages assets valued at $27 billion. In 2016, his net gains reached $1 billion, taking his net gains since the inception of the fund to $25.2 billion. He started trading from his dorm in Harvard three years before he started Citadel in 1990. Back in his trading days in 1987, Griffin installed a satellite dish on the roof of his place to obtain real-time stock quotes. At present, Griffin’s net worth stands at $9.1 billion.

4. Seth Klarman

Seth Klarman is the CEO and President of the Boston-based hedge fund firm Baupost Group, which has $32 billion worth of assets under management. He is an investment legend and his firm is one of the largest in the world. In 2016, his net gains hit $2.7 billion, taking his total net gains since the inception of the hedge fund in 1983 to $25.3 billion. Klarman is also the author of the book Margin of Safety, and is regarded as an expert in value investing. Furthermore, he is also a philanthropist, with a foundation that has $520 million worth of assets as of its most recent public filing. Currently, Klarman’s net worth is at $1.5 billion.

3. David Shaw

David Shaw is the Founder of D.E. Shaw & Co., L.P. which is a “global investment and technology development firm”. As a former computer science professor at the Columbia University, Shaw established the $40 billion firm with its operations involving sophisticated algorithms and mathematical modelling. In 2016, Shaw achieved net gains of $1.2 billion, making his overall net gains since the inception of D.E. Shaw in 1988 hit $25.3 billion. At present, his net worth stands at $6.2 billion.

2. George Soros

Hungarian investing heavyweight George Soros is the Founder of Soros Fund Management LLC, which has $26 billion in assets under management. A graduate of the London School of Economics, he is one of the most legendary hedge fund managers. Furthermore, he is an avid philanthropist who founded Open Society Foundations, which has had almost $14 billion in expenditures. Although he incurred a loss of $1 billion in 2016, his total net gains since the inception of Soros Fund in 1973 is still at a whopping $41.8 billion. Currently, the net worth of George Soros is at $8 billion.

1. Ray Dalio

Ray Dalio is the Founder and Co-Chief Investment Officer at Bridgewater Associates—the largest hedge fund in the whole world. The fund has $160 billion worth of assets under management, taking his net gains since Bridgewater’s inception to $49.4 billion. He was first exposed to the markets and investing when he was 12 years old and got advice from golfers for whom he caddied. Dalio finished his MBA from Harvard Business School and later launched the hedge fund from his New York City apartment. At present, he has a net worth of $17.4 billion.