Top Ten Highest Paid Hedge Fund Managers

Traders Monthly has out its list of the top 100 highest paid income hedge funds. While these sorts of lists are always prone to errors and missed managers, the numbers are still staggering, as the following subset of the top ten payees shows.

Other than shock and awe at the numbers, the main takeaway is the diversity in the strategies underlying the comp figures. We have two energy guys, two macro guys, two quants, a macro guy, two multi-strategy firms, and a would-be Buffett. In other words, there are as many strategy paths as ever to the top of the comp charts.

Name City Firm Age Est. Income
John Arnold Houston Centaurus Energy 33 $1.5-2B
James Simons East Setaucket, New York Renaissance Technologies Corp. 68 $1.5-$2B
Eddie Lampert Greenwich, Connecticut ESL Investments 44 $1-1.5B
T. Boone Pickens Dallas BP Capital 78 $1B-1.5
Stevie Cohen Stamford, Connecticut SAC Capital Advisors 50 $1B
Stephen Feinberg New York Cerberus Capital 47 $800-900M
Paul Tudor Jones Greenwich, Connecticut Tudor Investment Corp. 53 $700-800M
Bruce Kovner New York Caxton Associates 62 $700-800M
Israel Englander New York Millennium Management 58 $600-700M
David Shaw New York D.E. Shaw & Co. 55 $600-700M

Related posts:

  1. Top Hedge Fund Earners of 2005
  2. House Tours in Hedge Fund Land
  3. Tim O’Reilly, Hedge Fund Guy
  4. White Hedge Fund Managers Can’t Spell
  5. Putting Hedge Fund Income in Context

Comments

  1. Steve A says:

    I think this table shows the fund value, not the manager income. This article for example shows that John Arnold has an estimated income of about $10M. His fund manages about $1.5B (hence the value above).
    http://www.nytimes.com/2006/01/15/business/yourmoney/15traders.html?pagewanted=4&ei=5088&en=aa357ca5c514b37a&ex=1294981200&partner=rssnyt&emc=rss

  2. RK says:

    Those sound like the hedge fund income and not income to the individual. Even at $1B per year, it will take a while to catch up with Messrs Gates and Buffet.

  3. h6 says:

    Steve you’re a bit wrong, Centaurus manages 1.5 billion.
    They returned 307% or so for the year. Arnold’s pay structure is 3 and 30%. The math works out.

  4. pk says:

    Yes, they make it on the 3% total asset management fee and 30% cut of profits fee–Big Money, Yes, but Big Performance deserves it—Centaurus is big in energies including the commodity futures. Others on this list very active in Commodity Futures are T. Boone Pickens, Paul Tudor Jones and Bruce Kovner—these guys are legendary traders and know that the leverage in the commodity futures markets can ratchet up their returns when they’re on the right side (these guys seem to be right often!) of the trades. We tell traders both experienced and new that they can get a feel for this leverage both upside and downside at our site, where they can actually practice trading Commodity Futures without risking capital, at least that way they can see leverage can cut both ways. Its a great way to see if you have what it takes to make the big bucks and its a great way to see that these guys make the big bucks for a reason. Leverage helped make these guys very very wealthy. Can it make you wealthy too? who knows —the proof is in the results and these guys consistently deliver—–they’re not just talking the talk, they’re walking the walk. Make Money!