15 Richest Hedge Fund Managers in the World
In this article, we will take a look at 15 richest hedge fund managers in the world. If you want to see more richest hedge fund managers in the world, go directly to 5 Richest Hedge Fund Managers in the World.
Hedge funds are a type of active fund that pools money from investors and invests in securities and other types of investments with a goal of attaining positive returns. Hedge funds are limited to wealthier investors and institutions who can afford the higher fees and the risks of hedge fund investing.
Historically, hedge funds charge a risk of 1-2% of assets in addition to a performance fee of 20% of a hedge fund's profit. Given the change in the hedge fund industry recently, however, some hedge fund fees are slightly different from the traditional 1-2% and 20%.
Given the rise in the stock market over the last five decades in addition to the performance fees, some hedge fund managers have done very well. As a result, they rank among the world's richest people today.
Many of the richest hedge fund managers are based in the United States given that the United States has the world's largest economy and New York City is the world's financial capital.
Some of the richest hedge fund managers in the world are quantitative traders who use sophisticated algorithms and massive computing power to decide when to buy and sell stocks. Often, the quantitative traders will buy and sell thousands of different stocks each quarter.
Meanwhile, some other of the richest hedge fund managers in the world are value investors who generally like to buy high quality companies with competitive advantages and hold onto the stocks for a while.
2022 has been a challenging year in the markets as the Federal Reserve has increased interest rates six times this year alone. As a result, the broader market has declined substantially and many of the richest hedge fund managers have not done as well. Nevertheless, they still rank among the world's richest.
Given the uncertainty, it could be a good idea for long term investors to own a well diversified portfolio of stocks across many different sectors.
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Methodology
For our list of 15 Richest Hedge Fund Managers in the World, we took the 15 richest people listed on the Forbes' The Richest People In The World list for 2022 that are hedge fund managers.
We then ranked them based on their net worth according to Forbes.
For those of you interested, also check out 15 Most Famous Investment Gurus of All Time.
15 Richest Hedge Fund Managers in the World
15. Stanley Druckenmiller
Net Worth as of 4/5/22: $6.8 billion
Stanley Druckenmiller is a former lieutenant of George Soros at Quantum Fund where they made $1 billion shorting the British Pound in 1992. Druckenmiller is also the founder of Duquesne Capital which still issues quarterly 13Fs even though the fund is technically closed to investors as of 2010. At the end of Q3, Duquesne Capital's largest position was Coupang, Inc. (NYSE:CPNG) with a stake worth almost $324 million. Stanley Druckenmiller is worth $6.8 billion as of 4/5/22.
14. Paul Tudor Jones
Net Worth as of 4/5/22: $7.3 billion
Paul Tudor Jones is the founder of Tudor Investment Corp a hedge fund with a 13F equity portfolio of $4,633,712,000 as of the end of Q3. The fund's biggest position at the end of September was Alleghany Corp which was bought out by Berkshire Hathaway. Paul Tudor Jones was pessimistic on the market in May saying, "You can’t think of a worse environment than where we are right now for financial assets. Clearly you don’t want to own bonds and stocks." Jones ranks #14 on our list of 15 Richest Hedge Fund Managers in the World with a net worth of $7.3 billion.
13. David Shaw
Net Worth as of 4/5/22: $7.5 billion
David Shaw founded the quantitative fund D E Shaw which uses sophisticated algorithms to decide to buy and sell different stocks. Given its algorithmic approach, the fund has thousands of different stocks in its portfolio. At the end of Q3, D E Shaw's biggest position was in tech giant Apple Inc. (NASDAQ:AAPL) with 7,922,780 shares. David Shaw has a net worth of $7.5 billion according to Forbes.
Wedgewood Partners commented on Apple Inc. (NASDAQ:AAPL) in a Q3 2022 investor letter,
Apple Inc. (NASDAQ:AAPL) grew revenues +5% (foreign exchange adjusted and excluding Russia) driven by record iPhone revenues that were up about +3% on an exceptional year ago comparison of +50%. Apple’s installed base is over 1.8 billion devices which helps drive a software and services business that has generated almost $80 billion of revenue over the past 4 quarters. As we have highlighted in the past, Apple’s relentless focus on the development and integration between hardware (especially ICs) as well as software, continues to add significant value for customers of its products and services. We expect this favorable competitive dynamic to continue for the foreseeable future.
12. Chris Hohn
Net Worth as of 4/5/22: $7.9 billion
Chris Hohn ranks #12 on our list of 15 Richest Hedge Fund Managers in the World given his net worth of $7.9 billion. Hohn is the founder of TCI Fund Management, a fund with a portfolio value of $28.6 billion as of the end of Q3. The fund's biggest position at the end of September was Alphabet Inc. (NASDAQ:GOOG) with a stake value of over $5 billion. Hohn is a U.K. investor and also ranks as the 288 richest person overall on Forbes' The Richest People In The World list.
11. George Soros
Net Worth as of 4/5/22: $8.6 billion
George Soros is one of the greatest investors in history given his track record at Quantum Fund and later Soros Fund Management. With his macro views, Soros shorted the British pound in 1992 and made $1 billion in profit. Later, he would give billions away to philanthropy. Soros Fund Management's top position at the end of the third quarter is Rivian Automotive, Inc. (NASDAQ:RIVN) with 16.36 million shares. As of 4/5/22, George Soros has a net worth of $8.6 billion.
10. Chase Coleman
Net Worth as of 4/5/22: $10.3 billion
Chase Coleman is the founder of Tiger Global Management which invests in technology companies. The fund's biggest position at the end of Q3 was JD.Com, Inc. (NASDAQ:JD) with a stake value of slightly over $1.5 billion. Given the decline in tech stocks this year, the fund has lagged the broader market in 200. Chase Coleman has a net worth of $10.3 billion as of April 5.
9. Israel Englander
Net Worth as of 4/5/22: $11.5 billion
Israel Englander is the founder of Millennium Management, a hedge fund with an AUM of over $58.8 billion and more than 4,500 employees. The fund pursues multiple different strategies led by many different teams of investors. At the end of Q3, Millennium Management's largest equity position was in Duke Realty Corporation which was acquired by Prologis in a transaction that closed in October. Israel Englander ranks #9 on our list of 15 Richest Hedge Fund Managers in the World with a net worth of $11.5 billion.
8. Michael Platt
Net Worth as of 4/5/22: $15.2 billion
Hedge fund manager Michael Platt is one of the world's richest men with a net worth of $15.2 billion thanks to Platt founding BlueCrest Capital Management in 2000. After having initially managed money for others, BlueCrest Capital Management now manages money for Michael Platt and his partners. At the the of September, BlueCrest Capital Management's largest position was in SPDR Gold Shares (NYSE:GLD) with a stake value of almost $168 million.
7. Carl Icahn
Net Worth as of 4/5/22: $16.5 billion
Carl Icahn is the founder of Icahn Capital and an activist investor who tries to unlock value in companies. He often goes on CNBC to push a company's board to enact strategies he thinks could help the stock. Icahn Capital's biggest holding at the end of Q3 was Icahn Enterprises LP (NASDAQ:IEP) which was worth over $14.3 billion. He ranks #7 on our list of 15 Richest Hedge Fund Managers in the World given his net worth of $16.5 billion.
6. David Tepper
Net Worth as of 4/5/22: $16.7 billion
David Tepper is a famous value investor who made $7 billion in profits for his fund, Appaloosa Management, during the financial crisis by buying a substantial share in Bank of America Corporation (NYSE:BAC). Appaloosa Management's largest position at the end of the third quarter was a $218.8 million position in Constellation Energy Corporation (NASDAQ:CEG). Given the growth in his fund, Tepper ranks #6 on our list of 15 Richest Hedge Fund Managers in the World with a net worth of $16.7 billion.
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Disclosure: None. 15 Richest Hedge Fund Managers in the World is originally published on Insider Monkey.