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The World’s Top 10 Hedge Fund Managers by Earnings

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hedge fund managers by earnings

The Briefing

  • The top 10 hedge fund managers take home an average of $1.3 billion a year in earnings
  • The hedge fund industry manages over $3 trillion in assets
  • Hedge funds often have a two-and-twenty fee structure, charging 2% on all assets under management (AUM), and 20% on profits

The Top 10 Hedge Fund Managers by Earnings

The world of hedge funds has recently garnered notoriety during the GameStop/WSB debacle, in which an us-versus-them mentality began to brew for smaller investors.

In markets, hedge fund managers are considered the big fish in the pond. Not only do they oversee billions of dollars in capital, they often earn some billions as well. Here’s a look at the earnings of the top 10 managers, where yearly earnings range between a high of $1.8 billion and a low of $835 million.

Entering the World of Billions

Although fees in the wealth management industry have been subject to downward pressure for years, the earnings for the best in the business have been left largely unabated. The historically common fee structure for hedge funds is the two-and-twenty model—that is, 2% of all assets under management (AUM) and 20% of profits based on performance.

This makes out to be a pretty penny when considering hedge fund AUMs go higher than $100 billion, like with Ray Dalio’s Bridgewater Associates. Generous fees charged on an exorbitant value of assets is part in why these 10 managers made it to the Forbes 400 list.

In fact, the top 10 hedge fund managers combine for $108 billion in net worth:

ManagerSalary Earnings ($M)Net Worth ($M)Fund
Jim Simons$1,800$23,500Renaissance Technologies
Chris Hohn$1,800$16,900TCI Fund Management
Ken Griffin$1,500$15,000Citadel
Izzy Englander$1,500$7,200Millennium Management
Chase Coleman$1,400$6,900Tiger Global Management
Steven Cohen$1,300$5,000Point72
David Tepper$1,300$13,000Appaloosa Management
Raymond Dalio$1,100$16,900Bridgewater Associates
Stephen Mandel Jr.$835$2,800Lone Pine Capital
Nelson Peltz$835$1,700Trian Partners

The top 10 hedge fund managers earn approximately $1.3 billion on average. To put into perspective, this is comparable to the annual revenues of notable companies like Moderna, Cloudflare, Blue Apron, and Upwork.

hedge fund manager earnings vs company revenues

The World’s Greatest Investors?

Hedge fund managers are not your everyday investors.

They often engage in sophisticated investment strategies like shorting, that would leave most market participants scratching their heads.

Take Jim Simons, who recently retired from the board of Renaissance Technologies, which he founded in 1982. Before being lauded as the world’s greatest investor, he was a codebreaker for the NSA and an award-winning academic.

Simons is also known as the “Quant King”, because Renaissance deploys complex mathematical models and statistical analysis to make its investment decisions. Moreover, their flagship Medallion fund has returned 66% per annum since 1998, before counting his additional billions made in fees of course.

Where does this data come from?

Source: Institutional Investor and Forbes
Notes: Earnings and net worth data was released in March and September of 2020, respectively

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How Does the Bill and Melinda Gates Foundation Invest Its Money?

The Bill and Melinda Gates Foundation is funded by a trust that has a portfolio value of over $25 billion. Here’s how it invests its assets.

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Bill and Melinda Gates Foundation

The Briefing

  • The Bill and Melinda Gates Foundation Trust has a total portfolio value of over $25 billion
  • Almost half of the money is invested in Berkshire Hathaway, a holding company run by chairman and CEO Warren Buffett
  • The trust favors industrial stocks, with a 34% weighting in the sector

How Does the Bill and Melinda Gates Foundation Invest Its Money?

Bill and Melinda Gates have announced they are ending their marriage, but will continue to work together at their foundation.

The Bill and Melinda Gates Foundation, launched in 2000, is the largest private philanthropic organization in the United States. It has spent over $50 billion on global public health over the last two decades, including $1.75 billion on COVID-19 relief.

Of course, the foundation’s assets are managed by a trust until they are ready to be distributed to grantees. Here’s a look at how the Bill and Melinda Gates Foundation Trust invests its assets.

The Portfolio Breakdown

The trust has invested 100% of its holdings in stocks. It holds almost half of its value in Berkshire Hathaway, the holding company run by Warren Buffett.

StockValue% of Portfolio
Berkshire Hathaway$11.8B45.5%
Waste Management$2.6B10.0%
Caterpillar$2.6B10.0%
Canadian National Railway$1.9B7.2%
Walmart$1.6B6.4%
Crown Castle$1.0B3.9%
Ecolab$991M3.8%
UPS$960M3.7%
FedEx$921M3.6%
Schrodinger$518M2.0%
Coca-Cola FEMSA$294M1.1%
Grupo Televisa$213M0.8%
Liberty Global$156M0.6%
Apple$133M0.5%
Amazon$102M0.4%
Alphabet (Google)$102M0.4%
Twitter$15M0.1%
Liberty Latin America$14M0.1%

However, the portfolio is more diversified than initially meets the eye—Berkshire Hathaway itself is invested in almost 50 stocks.

Shrodinger, a healthcare-focused software company that makes up 2% of the trust’s total portfolio, was one of the best performing stocks of 2020 by price returns. The portfolio has also been boosted by delivery companies UPS and FedEx, both of which saw their share prices more than double over the last year as online shopping took off.

While the trust is dominated by U.S.-domiciled companies, a few foreign names do make the list. For example, Canadian National Railway makes up over 7% of the portfolio, while the Latin American bottler Coca-Cola FEMSA makes up just over 1%.

The Future of the Foundation

The trust continues to be managed by a team of outside investment managers, whose decisions have a critical impact on the amount of money the Bill and Melinda Gates Foundation has to fund its initiatives. For example, if Berkshire Hathaway were to dip 10%, this would drop the portfolio value by more than $1 billion.

In addition, the foundation is funded in part by the Gates’ personal donations—more than $36 billion from 1994 to 2018. Should Bill and Melinda go on to create their own separate philanthropic efforts post-divorce, the foundation may have a smaller portfolio to pull from going forward.

» Like this? Then you might also like The Warren Buffett Empire in One Giant Chart

Where does this data come from?

Source: SEC filings and MarketWatch
Notes: Portfolio holdings are as of December 31, 2020. Stock values are as of market close on May 3, 2021.

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How Media Consumption Has Changed Over the Last Decade (2011-2021)

The media consumption landscape in 2021 is shifting. Time spent on media continues to spike, with mobile challenging for the top spot

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changing media consumption

The Briefing

  • Since 2011, media consumption for U.S. adults is up 20% across all categories
  • An average of 4 hours and 12 minutes is spent on mobile devices

Media Consumption in 2021

There are a wide array of apps and life hacks out there designed to help regulate personal internet use and media consumption, but the data suggests they haven’t been working. Today, we consume more media than at any point in time in the last decade.

This data from Recode looks at how many minutes U.S. adults spend on various forms of media, comparing mobile, desktop, radio, television, and magazines.

How Many Minutes are Spent on Media?

In 2021, collective media consumption continues its upward trajectory, and is set to be at the highest it’s ever been. In 2021, overall media consumption among U.S. adults is estimated to be around 666 minutes per day, or 11.1 hours—a 20.2% increase from 2011.

YearMobileDesktopRadioTelevisionMagazinesTotal
2021252509925312666
20202315010025813652
20192085110026414637
20181905210227015629
20171645310228217618
20161365310528718599
20151245610928919597
2014886711129820584
2013746711630621584
2012606812031423585
2011454013131424554

Although media consumption has grown overall, this is predominantly driven by mobile usage. In fact, every category with the exception of mobile has shrunk from their respective peaks. Mobile on the other hand, has grown a whopping 460% in 10 years, from an average daily use of 45 minutes to a staggering 252 minutes.

Consumption by Generation

Disparities in media consumption have a generational aspect that’s worth noting, as well. For instance, older Americans like Baby Boomers still consume media routinely through television. On the other hand, younger cohorts like Millennials and Gen Z tend to consume more through mobile.

Increasing internet use has come with criticism, and is said to be partially responsible for our waning attention spans. With only 1,440 minutes in a day, it remains unknown exactly how many minutes we will continue to direct towards mobile use. But with figures growing 9% last year, we may not have yet reached the peak.

Where does this data come from?

Source: Recode
Notes: 2021 figures are projections by Zenith Media

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