A new report indicates that despite a bad 2015, hedge fund managers saw a big increase in paychecks.
It’s good to be a hedge fund manager, even if you aren’t making any money for your investors.
The 25 top-earning hedge fund managers pulled in $13 billion in 2015, an 11 percent increase over the year before at a time when many are insisting their end is nigh, according to an annual list from Institutional Investor’s Alpha.
Heavy market volatility last year slammed returns for half of hedge funds, and hedge funds in general ended down 1.12 percent. But hedge fund managers continue to rake in huge profits that only continue to grow despite the poor performance.
The top earners were Kenneth Griffin of Citadel and Jim Simons of Renaisssance Technologys, who each got $1.7 billion, according to the report. Griffin and Simons may have actually deserved their paychecks, earning a 14.3 percent and up to 16.5 percent, respectively.
However, third play Ray Dalio of Bridgewater Capital oversaw a big 7 percent loss in his fund, but despite that made $1.4 billion.
Hedge fund managers earn a typical fee of 2 percent on all assets under their control, so regardless of how a hedge fund performs, they get paid.
The best return on the list was Joe Edelman of Perspective Life Sciences, who oversaw an astonishing 51.8 percent increase in 2015, and was 10th on the list with a paycheck of $300 million.