Major hedge funds will earn $ 65.4 billion for customers in 2021

Author: Svea Herbst-Bayliss

BOSTON (Reuters) – The world’s 20 hedge funds raised $ 65.4 trillion in customers in 2021, setting a new record as stock prices rose and coronavirus cases rose, LCH Investments data show.

As a group, the most successful managers earned more than a third of the $ 176 billion that all hedge funds made last year, according to LCH Investments, a fund-tracking company that is part of the Edmond de Rothschild Group.

The top 20, including TCI Fund Management and Citadel-branded investment firms, returned an average of 10.5% and jointly managed nearly one-fifth of the industry’s $ 3.6 trillion in assets, data show. Their profits, however, delayed wider stock market gains.

The best returns in 2021 earned $ 63.5 billion in 2020 and exceeded $ 59.3 billion in 2019, despite fears of Delta and Omicron coronavirus variants and fears that the U.S. Federal Reserve will face rising interest rates soon.

“The net profits generated by the top 20 managers for their investors … were the highest ever,” above the 2020 earnings, which also set a mark, said LCH President Rick Sopher.

Chris Hohn’s TCI Fund Management earned $ 9.5 trillion in 2021, and Ken Griffin’s Citadel earned $ 8.2 billion for investors to be ranked among the top two.

The winner of the 2020 breakout, Chase Coleman’s Tiger Global, earned $ 10.4 trillion in 2020, a figure of $ 1 trillion in 2021. Israel England’s Millennium, which topped the list in 2020 with a profit of $ 10.2 trillion, earned $ 6.4 trillion in 2021.

Ray Dalio’s Bridgewater, the world’s largest hedge fund, fell behind after a disappointing year of losses in 2020, earning $ 5.7 billion in 2021, data show.

Daniel Loeb’s Third Point, including activist investment, which sets out a series of strategies that went into the top 20 in 2021, earning $ 3.3 billion.

Hedge fund representatives declined to comment.

Even though many companies have made billions, the hedge fund has gained 27% in 2021 from the broader stock market. “Overall, they didn’t fully realize the impressive returns available in the stock markets,” Sopher said, adding “their low net exposure and”. The difficult environment for short sales limited profits. ”