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Citadel Investment Group LLC sign outside its Chicago, Illinois, USA office
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The world’s top hedge funds posted record profits last year on the back of a stock market recovery, new analysis has revealed.
The 20 largest fund managers generated $67 billion in investor profits in 2023, up from the $65 billion recorded during the pandemic-era bull market in 2021, according to a study released Monday by hedge fund fund LCH Investments. exceeded the dollar.
LCH Investments estimates that the fund management industry as a whole recorded a profit of $218 billion, excluding fees.
The top fund, identified as the best performing fund in dollar terms since its inception, accounted for around three in annual profits last year, despite managing less than a fifth (19%) of the industry’s assets. It accounted for one-third of the total.
Top performers included Christopher Horn’s TCI, Ken Griffin’s Citadel, and Andreas Halvorsen’s Viking.
Top 20 managers by profit in 2023
| hard | Assets (billion) | Net profit since inception (billion) | Profit in 2023 (billion) | Release year |
| TCI | $50 | $41.3 | $12.9 | 2004 |
| citadel | $56.8 | $74 | $8.1 | 1990 |
| viking | $30.5 | $40.9 | 6 dollars | 1999 |
| millennium | $61.9 | $56.1 | $5.7 | 1989 |
| Elliot | $62.2 | $47.6 | $5.5 | 1977 |
| DE show | $43.8 | $56.1 | $4.2 | 1988 |
| lone pine | $15.9 | $35.6 | $4.2 | 1996 |
| bow post | $27.4 | $37 | $3.8 | 1983 |
| pershing square | $17.9 | $18.8 | $3.5 | 2004 |
| SAC/Point 72 | $31 | $33 | 3 dollars | 1992 |
| Appaloosa | $17 | $35 | $2.7 | 1993 |
| Farallon | $40.4 | $35.7 | $2.6 | 1987 |
| Ok Ji Hoo/Sculptor | $28.7 | $32.2 | $2.3 | 1994 |
| Egerton | $14 | $23.9 | $2.3 | 1995 |
| david kempner | $37 | $21 | $1.8 | 1983 |
| king street | $9.5 | $19.5 | $0.9 | 1995 |
| brevan howard | $35.6 | $28.5 | $0.4 | 2003 |
| caxton | $13.4 | $19.5 | $-0.3 | 1983 |
| bridgewater | $72.5 | $55.8 | $-2.6 | 1975 |
| soros | Not applicable | $43.9 | Not applicable | 1973 |
Brad Amy, director and head of research at LCH Investments, said the big funds were buoyed by the stock market’s “tremendous rally” in 2023. But he added that many funds also demonstrated particularly smart stock-picking strategies.
“Short selling is a very difficult sub-strategy, so it could be argued that it was best to remain biased long and have positions concentrated in high quality positions,” Amii told the Financial Times. Ta.
TCI, the top-ranked fund, recorded $12.9 billion in investor returns and ended last year up 33%, outpacing the S&P 500’s 24% gain.
The largest holders included Alphabet, Canadian National Railways, Visa and General Electric.
Citadel, which ranked second in 2023, had a profit of $8.1 billion, after posting a record profit of $16 billion in 2022. It has generated $74 billion in profits since its inception, ranking it among the most successful hedge funds of all time.
The study also found that the top 20 funds have earned a combined $755.4 billion since their inception, far exceeding their total assets under management of $655.5 billion.
A hedge fund is a limited liability partnership of individual investors whose funds are managed by a fund manager. Hedge funds are typically risky compared to mutual funds and are known for investing in non-traditional assets.
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