We all know that hedge fund managers make a lot of money. But last year was a particularly tough one for hedge funds; the industry, which is worth $3 trillion, shrunk by roughly $70 million, which is the biggest drop since 2009, according to HFR, a data tracker. Despite the drop in the industry, hedge fund managers still managed to rake in some serious dough. Here are the eight biggest moneymakers in the world of hedge fund managers.
6. (tied) David Shaw, founder of D.E. Shaw
Shaw earned a cool $400 million dollars last year while heading D.E. Shaw & Co, a company that "invests globally using a broad array of strategies in both public and private markets," according to its website.
6. (tied) Paul Singer, Elliott Management
Paul Singer also earned $400 million with his firm, Elliott Management. The firm reportedly earned $2.4 billion from outstanding bond payments from the Argentinian government as a result of a dispute that had been ongoing for 15 years. In addition, the fund earned 13 percent returns in 2016 after taking fees into account.
6 (tied) Daniel Loeb, founder of Third Point
Daniel Loeb made $400 million last year as the founder and CEO of Third Point. According to Third Point's website, the fund "employs an event-driven, value-oriented investment style." Third Point's main fund enjoyed 6.1 percent returns.
5. Kenneth Griffin, founder of Citadel
Kenneth Griffin earned $500 million last year as the CEO of Citadel. The firm had a return of roughly five percent net of fees, according to Forbes. The company's mission, according to its website "is to have a positive impact on the global economy by deploying capital to reach its fullest potential."
4. David Tepper, founder of Appaloosa Management
David Tepper earned $750 million last year while serving as president of Appaloosa Management. Forbes called him "arguably the greatest fund manager of his generation," but he only managed to post middling returns, and didn't beat the stock market.
3. Raymond Dalio, founder of Bridgewater Associates
Raymond Dalio took home $1.4 billion last year while serving as the co-chief investment officer of Bridgwater Associates. The firm, which is the largest hedge fund in the world, had many funds that ended up in the positive. Pure Alpha, the main fund of Bridgewater Associates, posted 2.4 percent in returns.
1. (tied) Michael Platt, founder of BlueCrest Capital Management
Michael Platt can lay claim to the title of highest earning hedge fund manager. The founder of BlueCrest Capital made $1.5 billion last year, after shutting down to outside money and solely managing Platt's money. BlueCrest Capital Management enjoyed a whopping 50 percent return net of costs, according to Forbes.
1. (tied) James Simons, founder of Renaissance Technologies Corp.
James Simons no longer works for Renaissance Technologies, but he is clearly still reaping the benefits, after making $1.5 billion last year as a result of the companies "strong performance," according to Forbes. Renaissance Institutional Equities, Renaissance Technologies' largest fund, experienced a 21.5 percent return in 2016, according to Forbes.