The Briefing
- The top 10 hedge fund managers take home an average of $1.3 billion a year in earnings
- The hedge fund industry manages over $3 trillion in assets
- Hedge funds often have a two-and-twenty fee structure, charging 2% on all assets under management (AUM), and 20% on profits
The Top 10 Hedge Fund Managers by Earnings
The world of hedge funds has recently garnered notoriety during the GameStop/WSB debacle, in which an us-versus-them mentality began to brew for smaller investors.
In markets, hedge fund managers are considered the big fish in the pond. Not only do they oversee billions of dollars in capital, they often earn some billions as well. Here’s a look at the earnings of the top 10 managers, where yearly earnings range between a high of $1.8 billion and a low of $835 million.
Entering The World of Billions
Although fees in the wealth management industry have been subject to downward pressure for years, the earnings for the best in the business have been left largely unabated. The historically common fee structure for hedge funds is the two-and-twenty model—that is, 2% of all assets under management (AUM) and 20% of profits based on performance.
This makes out to be a pretty penny when considering hedge fund AUMs go higher than $100 billion, like with Ray Dalio’s Bridgewater Associates. Generous fees charged on an exorbitant value of assets is part in why these 10 managers made it to the Forbes 400 list.
As a result, (Read more…)