World’s largest hedge funds record bumper year of profits
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Signage for Citadel Investment Group LLC hangs outside their office in Chicago, Illinois, U.S.
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The world’s top hedge funds raked in record profits last year amid a resurgence in stock markets, new analysis showed.
The 20 leading fund managers made $67 billion in investor profits in 2023, up from the $65 billion recorded during the pandemic-era rally of 2021, according research Monday from LCH Investments, a fund of hedge funds.
Overall, the fund management industry recorded gains of $218 billion after fees, according to LCH Investments estimates.
The top funds — identified as those which have performed best in dollar terms since their inception — accounted for around one-third of annual profits last year, despite managing less than a fifth (19%) of the industry’s assets.
Included among the best performers were Christopher Hohn’s TCI, Ken Griffin’s Citadel and Andreas Halvorsen’s Viking.
Top 20 managers by 2023 profits
| Firm | Assets (billion) | Net profits since inception (billion) | 2023 profits (billion) | Launch year |
| 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 Square | $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 Street | $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 |
Source: LCH Investments
LCH Investments’ director and head of research, Brad Amiee, said that the leading funds were buoyed by the stock market’s “fantastic run” in 2023. However, he added that many also showcased especially savvy stock selection strategies.
“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…
2024-01-23 02:27:00
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