25 Richest Hedge Fund Managers Made $22 Billion Last Year

[clacy]

Quote from 1prometheus:

With all do respect, the industry as a whole performs terribly for investors. They hold up the stars while quietly shuffling the losers out of the indexes, the blow ups that stop reporting, the absolutely enormous sales charges that almost guarantee that the investor will in one way or another end up hosed.

I might have confidence in certain specific managers, however the industry as a whole is somewhat of joke. By and large it exists not to serve investors, but rather to fleece them

If their performance is so horrible, then let the free market decide that it is and put the underperformers out of work?

End any and all bailouts to banks and investment companies and let the chips fall where they may.

 

[Butterball]

Quote from macroman:

Add all funds up weight by assets remove fees and get negative return overall.

You're terribly wrong. The top hedge funds made their investors fortunes, and that is after fees.

See: http://www.capitalholdings.com/en/Great Money Managers - Latest Research.pdf
The top 10 hedge fund managers have earned more than $153bn for their investors since they were founded.

It is foolish to believe that the remaining quartiles are in the red making for a total loss of the entire hedge fund universe.

 

[Pekelo]

Quote from doublet83:

While I won't defend the performance of the HF industry as a whole. You need to realize that both the S&P and Nasdaq's performance is only comparable to an investor who is 100% long the market.

I am not sure what is your point here. Are you trying to say that the market was going up last year most of the time, so it was bad for short funds ?

There were at least 2 big drops, from mid-Jan we dropped 9% and from late Apr 16%, so there were nice opportunities for short funds to make money. Assuming a HF was able to catch just half of those moves, that is still 12% for a short fund in a positive year for the market....

 

[psytrade]

Exactly right fanews! Clear mindedness is rarer and rarer these days. Somehow people think if you align yourself with performance artists, you become the performer. Its a kind of consumerist mantra thats found its way into the mimesis of the Market.

Why else would Stanley Druckenmiller unwind his fund in 2011, Timothy Barakett unwound at the end of 2009.. And numerous other funds quietly close up shop? Because they know the jig is up!

Quote from fanews:

The investment funds like renaissance making more than 25% or more consistently are 'active' traders and move markets.

They are a small player only 5 billion in the market. Citadel etc these guys represent like 15% of nasdaq volume

so theoretically less than 10 hedge fund control the market. and these guys are the 'market makers' of many stocks and sectors.

these hedge fund have a high churn rate.

only 275 employees. This hedge fund industry is CLOSED industry and money is circulalated via feeder funds an cloak and dagger type of money transfers. There is no transparency or competition whatsoever everything is done under the table.

you got that 'greed' is the only reason people are here in wall street.
making money is the only thing these investors gives a fuck about.

wall street is a closed shop.

and the reason the fund is closed becaus due to law of large numbers it's impossible to acheive 50% ROC year over year with a 100 billion dollar fund. the market isn't big enough. 2008 2009 2010 was 'abnormal' years you may not see years like that for decades to come

traders say volume is light well volume is 'normal' volume
this is the new normal.



http://en.wikipedia.org/wiki/Medallion_Fund

 

[dcvtss]

Quote from clacy:

If their performance is so horrible, then let the free market decide that it is and put the underperformers out of work?

End any and all bailouts to banks and investment companies and let the chips fall where they may.

That's just it though, the relationships are so cozy between high finance and high government and the machinations are so cloaked in secrecy that to a casual outsider it is very hard not to draw the conclusion that it's all just a giant shell game to steal taxpayer and investor money.