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![LCH finds that the world's top hedge funds will triple their client profits in 2023](https://i-invdn-com.investing.com/trkd-images/LYNXMPEK0L00L_L.jpg)
©Reuters. File photo: Traders work inside the trading post of the New York Stock Exchange (NYSE) on January 19, 2024 in New York City, USA.Reuters/Brendan McDiarmid/File photo
Written by Carolina Mandl and Nell McKenzie
NEW YORK/LONDON (Reuters) – The world’s 20 best-performing hedge funds generated $67 billion for investors in 2023, nearly triple their 2022 return, according to data released by LCH Investments on Monday. Activist TCI Fund Management is leading the way. .
Bridgewater Associates and Caxton, founded by billionaire Ray Dalio, were the only two companies out of 20 where the fund posted losses.
The rankings do not include all of Bridgewater’s funds, such as All Weather, which tends to track the broader market and rose 10.6% last year, the people said.
LCH said the top 20 managers had an average return of 10.5% last year, compared with an industry-wide return of 6.4%.
Billionaire Christopher Horn’s TCI leads the annual rankings with 2023 returns ($12.9 billion after fees), while multi-strategy firms Citadel, Millennium Management and DE Shaw are the top three hedge funds by lifetime returns. It became.
LCH Chairman Rick Soffer said in an emailed statement that the three companies generated 38.3% of the industry’s total revenue over the past three years, despite accounting for just 4.6% of the industry’s assets under management. .
Multi-strategy hedge funds typically use significant leverage to generate returns. The largest companies have fee structures that cover most of their operating costs, allowing them to pay top dollar for top talent.
The industry’s strong performance last year ended in 2022, when at least eight of the top 20 hedge funds suffered losses due to market turmoil caused by the Ukraine war and the Federal Reserve’s interest rate hikes aimed at curbing inflation. followed by a decline in
LCH Investments, a fund of funds company of the Edmond de Rothschild Group, tracks annual hedge fund returns to calculate cumulative lifetime returns, a key measure of performance for some institutional investors. are doing.
The sources include meetings with company executives, audited management reports and other sources, the report said.
Billionaire Ken Griffin’s Citadel has made $74 billion in profits since its founding in 1990 and remains in pole position in 2023. Last year, Citadel’s flagship fund rose 15.3%, and the company decided to return about $7 billion to investors.
Pershing Square, William Ackman’s activist fund, returned to the rankings for the first time since 2015. The company has generated $18.8 billion for investors since 2004 and ranked 20th in 2023.
Last year, Pershing Square returned 26.7%, outpacing the broader stock market’s gains and bouncing back from losses from the previous year.
2022 2023 Solid Net Income 2023 Net Income
Ranking Ranking since rising ($
Inception Brain)
($1 billion)
1 1 Citadel 74 8.1
3 2 DE Show 56.1 4.2
4 2 Millennium 56.1 5.7
2 4 Bridge weight 55.8 (2.6)
r
6 5 Elliott 47.6 5.5
5 6 Soros 43.9 n/a
14 7 TCI 41.3 12.9
7 8 Viking 40.9 6
8 9 Bow post 37 3.8
9 10 Farallon 35.7 2.6
11 11 Lone Pine 35.6 4.2
10 12 Appaloosa 35 2.7
12 13 points 72 33 3
13 14 Ok 32.2 2.3
jif/scalp
Thor
15 15 Brevin 28.5 0.4
howard
16 16 Egerton 23.9 2.3
18 17 Davidson 21 1.8
kempner
19 18 King 19.5 0.9
street
17 18 Caxton 19.5 (0.3)
– 20 Pershing 18.8 3.5
square
Total 755.4 67
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