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Hedge Fund Rich List: Who Stayed Afloat in Worst Year Since 2008?

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Hedge Fund Rich List: Who Stayed Afloat in Worst Year Since 2008?

Hedge Fund Rich List: Who Stayed Afloat in Worst Year Since 2008?

Every year, Institutional Investor’s Alpha documents the performance of the world’s most elite investors: hedge fund managers. The Hedge Fund Rich List, in its 14th year of publication, is a “who’s who” of the industry and highlights the performances of the most successful investment managers in the world.

Our infographic today is based on this report, and it breaks down the last year for this elite group.

The Worst Year Since the Financial Crisis

The performance of this collective of top-notch investors was the worst as a whole since the Financial Crisis in 2008. In the previous five years, their total earnings averaged $19.3 billion. Last year, the group brought in a paltry $11.6 billion. This brought average earnings per person down to $467 million over the year from $846 million in 2013.

This is counterintuitive based on the fact that the S&P 500 gained an impressive 13.7% on the year in 2014. Interestingly, only about half of the managers beat the index’s performance, with the rest falling into single-digit return territory.

Minimum Wage

The minimum amount of earnings to make the list dropped significantly from $300 million to $175 million. This is the lowest minimum earnings in the last three years.

David Tepper, of Appaloosa Management, is barely staying afloat. After having one of the best five-year stretches of performance in hedge fund history, he saw his earnings decline 88.6% in 2014. He had finished #1 overall in 2013, but only saw a 2.2% gain over the last year.

Many managers were not even lucky enough to get the “minimum wage”.

John Paulson of Paulson & Co., who famously made his fortune betting against the US Housing Market in 2007, ended up tanking in 2014 with his second worst year ever. His Advantage Plus fund fell 36% while his Advantage fund dropped 29%.

The Top 10 Investors

The managers that had the highest returns were as follows:

10. Charles (Chase) Coleman III of Tiger Global Management – $425 million
9. O. Andreas Halvorsen of Viking Global Investors – $450 million
8. David Shaw of D.E. Shaw Group – $530 million
7. Larry Robbins of Glenview Capital Management – $570 million
6. Michael Platt of BlueCrest Capital Management – $800 million
5. Israel (Izzy) Englander of Millennium Management – $900 million
4. Bill Ackman of Pershing Square Capital Management – $950 million
3. Ray Dalio of Bridgewater Associates – $1.1 billion
2. James Simons of Renaissance Technologies – $1.2 billion
1. Kenneth Griffin of Citadel – $1.3 billion

Profiles on those that broke $1 billion:

Ray Dalio, the legendary founder of Bridgewater Associates, along with two of his associates, made the full list of 25 earners. Bridgewater uses computers and humans to make decisions in 199 markets. Ray took home $1.1 billion.

Renaissance’s intense data focus helped James Simons qualify to the Rich List every year for the last 14 years. He finished #2 with $1.2 billion in earnings.

Kenneth Griffin has made the Rich List 13 times, however this is his first time finishing #1 overall. The founder and CEO of Citadel posted gains of 18.3% in its multistrategy funds driven largely by profits related to the equity markets.

What’s Ahead for 2015?

While 2014 was a tumultuous year for hedge fund managers, it is clear 2015 will be at least as challenging and interesting. Global headwinds such as the Greek Crisis and volatile Chinese equity markets will test even the most seasoned investors.

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Ranked: Top 10 Single-Day Market Cap Gains

Nvidia broke the record for the largest single-day market cap gains after adding nearly $250B on Feb. 22, 2024.

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The 10 Biggest Single-Day Market Cap Gains

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

Since the COVID-19 pandemic, U.S. tech stocks have led in terms of market cap gains, sometimes boosting their valuations by hundreds of billions of dollars in a single day.

In this graphic, we’ve ranked the largest single-day gains ever recorded, using data from Bloomberg.

Top 10 List

The top 10 list includes just 5 companies, and all are based in the U.S.

RankDateCompanySingle-day
Market Cap Gain
(USD billions)
1Feb 22, 2024NVIDIA$247.0
2Feb 2, 2024Meta$196.8
3Nov 10, 2022Apple$190.9
4Feb 4, 2022Amazon$190.8
5May 25, 2023NVIDIA$184.1
6Jan 28, 2022Apple$178.9
7Jul 31, 2020Apple$169.0
8Oct 28, 2022Apple$150.5
9Mar 13, 2020Microsoft$150.4
10Apr 26, 2023Microsoft$148.3

To put these massive gains into context, consider this: As of May 2023, the average market cap of an S&P 500 company was $30.4 billion.

Meta’s $197B Record Didn’t Last Long

On Feb 2. 2024, Meta set a new record for the largest single-day gain after reporting strong quarterly earnings, as well as announcing $50B in share repurchases and its first ever dividend payment.

This record lasted only 20 days, however, as Nvidia’s massive Q4 2024 earnings beat sent it to all-time highs. The firm is now nearing a $2T valuation, firmly placing it among the world’s most valuable corporations.

More on Nvidia’s Earnings…

Nvidia reported $12.3B in net income during Q4 2024, which is 769% higher than the same quarter last year. Revenues are also up 265% from last year, largely driven by demand for its AI chips like the H100 Tensor Core GPU.

Nvidia’s earnings have seemingly shifted the AI craze into another gear, boosting other chip stocks like AMD and Super Micro Computer (SMCI) to double-digit % gains for the day (Feb 22).

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