2017 Highest-Earning Hedge Fund Managers | CNBC

[777]

Hedge fund mangers are supposed to give absolute returns (low beta) in up or down markets. SPX was up 23% in 2017. The guy who got 41% return was probably levered stocks and Im pretty sure he would be hurting if the market was down 5% instead!

Hedge funds are supposed to do what they say they will do. Some have the goal you stated and others do not.

Most hedge funds are scams in that they figure to underperform reasonable benchmarks because of their high fees.

Renaissance Technologies is one notable exception having averaged roughly 74 percent a hear before fees for over 20 years. Since the only investors left are the founders and key employees, the high fees of something like 5/45 are misleading. Renaissance has produced more billion than any business I know of

Ray Dalio who has the world's largest fund has the goal you laid out and always has a bunch of un/low corelation bets.

Tepper, Ackman, Druckenmiller (and the old Steve Cohen) are more likely to bet directionally on their opinions.

 

[bone]

What a country we live in, most can't get close to the Index averages and make millions/billions, it is like rewarding the wrong managers. No different than Baseball Allstars, people vote for their team's players regardless if they are top of their game.

I'm pretty sure that these "annual earnings" include the rolled personal investment funds that those managers keep in the fund. Much of these "annual earnings" are due to compounded personal funds. From what I understand it's not necessarily the 2/20 management and performance fees generating those fantastic numbers.

 

[truetype]

Yes, the articles say so explicitly.