Dear all,
This LCH Investment Annual rankings just came out from Bloomberg this morning.
Regards
James
Hedge Funds Cap a Bumper Year for Profits
- Top 20 firms ranked by most gains since start made $67 billion
- Citadel, Millennium and D.E. Shaw dominate multistrategy funds
The annual survey focuses on money managers with the most overall profits in absolute dollar terms since inception, and as a result the largest and oldest hedge funds typically tend to do best. The top 20 firms, which oversee less than a fifth of the industry’s assets, generated $67 billion or roughly a third of the gains last year.
For reference, the top 20 funds manage just 18.9% of all assets controlled across the sector, managing assets worth $665.5 billion compared to the $2.85 trillion in assets managed by all other remaining funds.
These huge gains have, however, seen the top 20 generate 83% of all gains generated by hedge funds over the past three years.
In monetary terms, this has seen the top 20 generate net gains worth $775.4 billion since their inception compared to the $862 billion gains made by all remaining hedge funds in the sector.
Chris Hohn’s The Children’s Investment Fund Management (TCI Fund) achieved the greatest gains in 2023, generating net gains worth $12.9 billion last year, bringing its overall net gains since inception up to $41.3 billion since starting in 2004.
TCI Fund’s huge gains in 2023 saw it jump seven places in the rankings of those hedge funds that have made the largest amounts of money since starting, rising from 14th place in 2022 to 7th place on this year’s list.
Ken Griffin’s Citadel LLC has, meanwhile, generated higher gains since its inception than any rival hedge fund in the world, in achieving net gains worth $74 billion since starting in 1990, on the back of gains worth $8.1 billion in 2023.
Citadel’s massive $74 billion gains over the past three decades saw it sit well out in front ahead of joint second placers D.E. Shaw & Co and Millennium Management, which have both generated net gains worth $56.1 billion since starting in 1988 and 1989 respectively.
Together these top three hedge funds have generated almost two fifths (38.3%) of all gains achieved by the hedge fund sector over the past three years, in reaping net gains worth $71.2 billion, despite controlling just 4.6% of all assets managed by the sector.
