They are also known as investment managers. These are the people in charge of implementing the investment strategy and managing the portfolio trading activities of a fund. They have a high level of professional credentials and they are paid a percentage of the fund’s average assets.Fund managers are paid through a compensation structure commonly known as the “2 and 20”, which stands for a 2% management fee and a 20% performance fee charge.
Those numbers can, however, vary from fund to fund. More specifically, two and twenty means hedge fund manager would charge 2% of total assets under management and 20% of any profits.The fund managers also likely have their own capital invested in their funds so that would have to be taken into consideration when calculating their take home pay.
David Tepper, the founder of $12 billion-distressed-debt hedge fund Appaloosa Management, made it to the top of the list. Fund managers and traders bet on an economic revival in Japan, laid siege to corporate boards, invested in hospitals that could benefit from Obamacare and helped make General Motors a hot stock. They waged an epic battle over a seller of diet shakes, drew the ire of actor George Clooney and were blamed for the problems of a 111-year-old American department store chain. In the end, the vast majority of hedge fund managers were yet again unable to keep up with the U.S. stock market as equities boomed from New York to Tokyo.
Top 10 Highest Paid Fund Managers in the World 2016
David Tepper :-
David Alan Tepper is an American hedge fund manager and the founder of Appaloosa Management. His investment specialty is distressed companies.David Tepper can be considered as the greatest hedge fund manager of all time. He is the man behind Appaloosa Management, a $15 billion hedge fund company that has been averaging returns of 30 percent every year since 1993. The past year saw the same number, and that rate is even more impressive considering that most hedge funds had underperformed when compared with the actual yield of the stock market. Timing has always proven to be the key for Tepper, as he always manages to invest and bet on stocks and securities at key moments.
- Earnings:- $2.2 billion
- Born: September 11, 1957 (age 56), Pittsburgh, Pennsylvania, United States
- Education: Peabody High School, University of Pittsburgh, Carnegie Mellon University
Carl Icahn :-
Carl Celian Icahn is an American businessman and investor. He is the majority shareholder of Icahn Enterprises, a diversified holding company. Carl Icahn is the founder of Icahn Capital. Though he is already 77 years old, he has retained a magic touch in handling hedge funds. His asset pool earned a yield of 28 percent in 2012, far outstripping the numbers posted by the stock market and other hedge fund managers. The fund includes his personal money and that of his employees, and it benefitted tremendously from Icahn’s successful bet on the stocks of companies like the Hain Celestial Group and CVR Energy.
- Earning :- $1.9 billion
- Born: February 16, 1936 (age 78), Brooklyn, New York, United States
- Nationality: American
- Spouse: Gail Icahn
- Children: Brett Icahn
- Education: Princeton University (1957), more
Steven A. Cohen :-
Steven A. Cohen is an American hedge fund manager. He is the founder of SAC Capital Advisors, a Stamford, Connecticut-based hedge fund focusing primarily on equity market strategies. Steven Cohen is the founder of SAC Capital Advisors. He has recently gotten into controversy because of allegations of insider trading. Still, the company was trusted with $14 billion in assets to manage. Last year, the company’s hedge fund earned 25 percent, but its high charges meant that the final return amounted to only 13 percent. Even at that rate however, the hedge fund still performed much better than a lot of its competitors.
- Earning :- $1.3 billion
- Born: June 11, 1956 (age 57), Great Neck, New York, United States
- Spouse: Alexandra Cohen
- Education: Wharton School of the University of Pennsylvania
James Harris Simons :-
James Harris “Jim” Simons is an American hedge fund manager, mathematician, and philanthropist. Considering his background as a code breaker and pattern recognition some also consider him as one of the pioneers of Financial signal processing. James Simons is the founder of Renaissance Technologies, a $20 billion hedge fund firm.
He graduated from the Massachusetts Institute of Technology and became a theoretical mathematician and code breaker for the Department of Defense during the Vietnam War. He then headed the math department of SUNY-Stony Brook. He established Renaissance in 1982 in New York, using computer modeling to find flaws in highly liquid securities. A couple of the company’s funds lost money last year, however. At 74 years old, Simons is still active in devising strategies for the hedge funds.
- Earning :- $1.3 billion
- Born: 1938, Newton, Massachusetts, United States
- Children: Nathaniel Simons, Audrey Simons, Liz Simons, Paul Simons, Nicholas Simons
- Education: University of California, Berkeley (1962), more
George Soros :-
George Soros or; Hungarian: Soros György; Hungarian; born August 12, 1930, as Schwartz György is a Hungarian-born American business magnate, investor, and philanthropist. He is the chairman of Soros Fund Management. George Soros is the founder of Soros Fund Management LLC. The company manages $24 billion, mostly from his personal wealth and the money of his various foundations.
Considered as a legend in the financial industry. Soros has relinquished daily operations of his company to Scott Bessent, though he still remains heavily involved despite already being 82 years old. His fund did not do as well in 2012 when compared with the stock market, but it still managed to yield out positive numbers.
- Earning :- $1.1 billion
- Born: August 12, 1930 (age 83), Budapest, Hungary
- Education: London School of Economics and Political Science (1952)
- Spouse: Susan Weber Soros (m. 1983–2005), Annaliese Witschak (m. 1960–1983)
- Siblings: Paul Soros
- Children: Alexander Soros, Gregory Soros, Andrea Soros, Robert Soros, Jonathan Soros
Kenneth C. Griffin :-
Kenneth Cordele Griffin is an American hedge fund manager. He is the founder and CEO of Citadel LLC, a Chicago-based investment firm. Ken Griffin is the founder and owner of Citadel LLC. The company had endured some tough losses as recent as 2008. It still managed to retain $14 billion in asset management, however, and it bounced back by 2011 with a net return of more than 20 percent. Last year, the fund managed even better numbers with a 25 percent yield. Aside from hedge funds, Citadel also has a securities business that accounts for 14 percent of the consolidated equity volume in the United States.
- Earning :- $900 million
- Born: October 15, 1968 (age 45), Daytona Beach, Florida, United States
- Spouse: Anne Dias-Griffin
- Education: Harvard University
Ray Dalio :-
Ray Dalio is an American businessman and founder of the investment firm Bridgewater Associates. In 2012, Dalio appeared on the annual Time 100 list of the 100 most influential people in the world.Ray Dalio is the founder of Bridgewater Associates, a fund management company he established in New York in 1975. The company is currently the biggest hedge fund company in the world, managing tens of billions of dollars in assets.
Though his hedge fund did not perform as well as expected, the company is still well respected in the financial community. Dalio has been slowly delegating a lot of his responsibilities to his subordinates as he has been focusing on completing a new headquarter in Stamford in Connecticut for $750 million.
- Earning :- $800 million
- Born: 1949, Jackson Heights, New York City, New York, United States
- Education: Long Island University, Harvard Business School, Harvard University
David E. Shaw :-
David Elliot Shaw is an American computer scientist and computational biochemist who founded D. E. Shaw & Co., a hedge fund company which was once described by Fortune magazine as “the most intriguing and mysterious force on Wall Street. “David Shaw is the man behind D.E. Shaw & Co., LP. A PhD holder from Stanford, Shaw still directs decisions of the company regarding the fund even though he is not involved with the company’s daily operations anymore. He is currently an adjunct professor of biomedical informatics at the medical school of Columbia University. Last year, the company’s flagship fund earned 18 percent, while a smaller hedge fund it manages got a 15.6 percent return.
- Earning :- $625 million
- Born: March 29, 1951 (age 62)
- Spouse: Beth Kobliner
- Education: University of California, San Diego, Stanford University
Leon G. Cooperman :-
Leon G. “Lee” Cooperman is an American businessman, investor, and philanthropist. He is the Chairman and CEO of Omega Advisors, Inc. Leon Cooperman is the founder and owner of Omega Advisors. The native New Yorker started out as a quality control engineer with Xerox in 1965. He then got his MBA from Columbia University before joining Goldman Sachs. He then went on to become the head of its asset management group. He decided to leave in 1991 to form Omega. Last year, the company managed $6.6 billion and earned 25 percent.
- Earning :- $470 million
- Born: April 25, 1943 (age 70), The Bronx, New York City, New York, United States
- Spouse: Toby Cooperman
- Education: Columbia Business School, Columbia University, Hunter College
Daniel S. Loeb :-
Daniel Seth Loeb is an American hedge fund manager. He is the founder and chief executive of Third Point LLC, a New York-based hedge fund with a portfolio worth $14 billion. Daniel Loeb is the founder and chairman of Third Point. The company’s small leverage fund was considered as one of the best performing hedge funds of 2012.
Its prime hedge fund earned a highly respectable 21.2 percent net return, beating the numbers of the stock market. He is currently managing a total of $10 billion. He made money betting on the sovereign debt of Greece. He then effected a leadership change in Yahoo, putting Marissa Mayer as the CEO in lieu of Scott Thompson. He has also taken a position in Herbalife even after other fund managers called the company a pyramid scam.
- Earning :- $425 million
- Born: December 18, 1961 (age 52)
- Spouse: Margaret Davidson Munzer (m. 2004)
- Education: Columbia University, University of California, Berkeley