Hedge funds made a $178 billion profits for the year 2019

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Stock market rising and falling

The $3 trillion hedge fund market posted its best performance in a decade as reports showed that Billionaire money managers Chris Hohn and Stephen Mandel led hedge fund made incredible gains amidst surging markets.

As per the estimate made by a fund of hedge funds, LCH Investments, after fees the industry made profits of nearly $178 billion after fees. 

LCH Investments also reported that Mandel led Lone Pine Capital made $7.3 billion for its investors as Chris Hohn’s TCI Fund Management made $8.4 billion for its customers.

LCH Investment’s annual survey focuses on managers with the most overall profits since inception, a ranking where generally the largest and oldest hedge funds are known to give the best results. 

According to the chairman of LCH, Rick Sopher “2019 was a year for very strong gains for several hedge funds positioned in the top 20, particularly for those that were positioned net long equities.”

As per reports, Hedge Funds have fallen behind cheaper index funds tracking market returns year after year, generally as they are paired against the longest-running bull market in stocks. 

Hedge funds betting on rising and falling stocks witnessed a 13.7% gain in 2019, however, in the S&P 500 index they fell behind the 31.5% surge.

LCH’s ranking for the most profits since inception was topped by Ray Dalio’s Bridgewater, whose main fund in 2019 beared its first loss since 2000. 

Hedge funds are credited with a huge $1.28 trillion for their clients, since its launch. Out of which the top 20 hedge funds have made 44% of the gains amounting up to roughly $558 trillion.

With its best-ever annual performance six years, TCI made a comeback in the top 20 rankings as its long-biased activist fund gained 41% in 2019.

 John Armitage’s Egerton Capital and TCI were the only new hedge funds to make it to the list of top 20 hedge funds in 2019 as both the hedge funds were left out of the top 20 list in 2018.

According to Sopher, an estimate made by LCH showed that just through commitments or donations to philanthropy and charitable causes, top hedge fund managers have jointly made $62.5 billion, out of which, since inception, roughly 45% of the performance fees are earned by their respective firms 

Top 20 Managers Ranked by Profits in 2019 as per Bloomberg

 

MANAGER NET GAINS SINCE START 2019 GAINS LAUNCH YEAR
TCI 22.8 8.4 2004
Lone Pine 33.2 7.3 1996
Renaissance Technologies 22.3 5.6 2005
Egerton 18.9 5 1995
Citadel 35.6 4.9 1990
Viking 29.7 4.3 1999
Farallon 26.4 3.7 1987
Millennium 25.8 3.4 1989
Elliott Associates 28.3 3.2 1977
DE Shaw 31.9 2.8 1988
Baupost 29.8 2.4 1983
SAC/Point 72 23.4 2.3 1992
Appaloosa 26.7 1.5 1993
Och Ziff/Sculptor 27.5 1.3 1994
Paulson 19 1.1 1994
Brevan Howard 19.6 0.8 2003
Moore 18.6 0.3 1990
King Street 15.9 0.3 1995
Bridgewater 58.5 0.6 1975
Soros Fund Management* 43.9 N/A 1973
Top 20 Managers 557.8 59.3  
All Managers 1275 178  

 

 

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