Israel “Izzy” Englander, President and CEO of Millennium Management LLC.
Ronda Churchill | Bloomberg | Getty Images
The top 25 highest-paid hedge fund managers recorded a record $ 32 billion in 2020, up more than 50 percent from 2019, according to the rich list of institutional investors.
A total of 15 hedge fund managers earned $ 1 billion or more, compared to just eight in 2019. The big gains during the pandemic, coupled with the public debate on hedge funds following the GameStop controversy, will draw criticism from lawmakers and the public on the payment of hedge funds and equity in financial markets.
The biggest winner was Israel’s “Izzy” Englander from Millennium Management, earning $ 3.8 billion. Its flagship fund grew by 26% last year, which was the best return in 20 years. Like many of last year’s best-performing funds, Millennium relies more on stock selection than on quantitative strategies that use computer algorithms.
In second place is Jim Simons of Renaissance Technologies, who earned $ 2.6 billion. Its investors have not fared as well. Renaissance Technologies’ top three foreign investor funds fell 20 percent to 30 percent, according to the report. But its Medallion fund, which is mainly for employees, has grown by 76%. Simons retired as president on January 1.
Chase Coleman of Tiger Global ranked third with a salary of $ 2.5 billion. The fund was an early investor in technology stocks and overseas games, which worked well during the pandemic, giving its fund a 48% return. His partner, Scott Shleifer, head of Tiger’s privately held business, was ranked 8th with $ 1.5 billion. Shleifer just bought the most expensive house ever sold in Florida, paying more than $ 130 million for a newly built mansion in Palm Beach.
Ken Griffin of the Citadel, who is at the center of the GameStop debate, came in fourth with $ 1.8 billion, with his fund up 24%. Steve Cohen of Point72 Asset Management, which owns the Mets, was tied for fifth place with David Tepper, both at $ 1.7 billion.
Correction: An earlier version of this story incorrectly assigned the Mets property.