The Recession is official over for the hedge fund industry. Last year, hedge fund managers took in over $21 billion dollars. This marked a full 50% markup from their profits in the previous year. These statistics included only the earnings of the top 25 hedge fund managers in the business. David Tepper, Steven Cohen and John Paulson were the top names on the list. Each of them earned over $2 billion. Each of them also faced scrutiny from regulator for insider trading or taking advantage of others.
Although Paulson was the one who benefitted most from the housing market, it was actually Cohen and his firm SAC Capital that ended up paying the fines of $1.8 billion dollars in response to insider trading accusations. He was still able to create more wealth for himself than the majority of hedge fund operators that year as he diverted all of his assets towards managing his personal fortune.
These three winners may have actually skewed the results of the overall hedge fund market a bit: The truth is that most hedge fund managers were not able to beat the market. As a matter of fact, most hedge funds performed considerably less well than the market as a whole. Securities rose 32 percent over the last year; hedge funds as a whole only rose nine percent. Jim Simons, Dan Loeb and Ray Dalio rounded out the list of top hedge fund managers. Each of these managers also broke personal records for personal fortunes. The Dalio performance was especially telling as he personally raked in over $600 million while his funds actually underperformed.