In the 16th edition of Institutional Investors Alphas Rich List, Renaissance
Technologies chairman Jim Simons once again takes home the
crown as the highest-earning hedge fund manager.
The only man to make the Rich List every single year, Simons
topped the list this year after tying for first place the
previous year. His firms two main funds, Renaissance
Institutional Equities Fund and Renaissance Institutional
Diversified Alpha Fund, each earned double-digit returns in
Simons, who is no longer involved in running Renaissance on
a day-to-day basis, nevertheless earned $1.6 billion in 2016
$200 million more than runner-up and Bridgewater
Associates founder Ray Dalio between earnings from
capital invested in his firms funds and his share of
fees, the two components used to calculate the Rich List.
Dalios second-place spot was secured after
Bridgewaters Pure Alpha and All Weather funds finished
the year in the black, with All Weather earning 11.6 percent.
The management fees generated by Bridgewaters $122
billion in hedge fund assets didnt hurt.
Simons and Dalio were the only managers to earn above $1
billion this year, as hedge fund managers overall earned less.
This years top 25 took home a combined $11 billion, the
lowest total since 2005, when Rich List members earned $9.4
Two Sigma co-founders John Overdeck and David Siegel tied for third with earnings
of $750 million apiece as assets at the quantitative hedge fund
surged to $40 billion. Following the duo was Appaloosa
Managements David Tepper, who ranked fifth with $700
million in earnings half of what he made last year,
owing to his firms second single-digit return in three
Citadel CEO Ken Griffin, who last year tied for first with
Simons, slid to sixth place after his firms main
multistrategy funds, Wellington and Kensington, posted their
smallest gain in eight years. Activist Paul Singer was close
behind with $590 million in earnings, roughly quadruple what he
made last year. His firm, Elliot Management Corp., posted a
13.1 percent gain in its main multistrategy fund in 2016.
The top ten was rounded out by Michael Hintze (CQS), David
Shaw (D.E. Shaw Group), and Izzy Englander (Millennium
Management), who earned $450 million, $415 million, and $410
Hintzes return to the main Rich List for the first
time in four years comes after his firms flagship fund
posted a 30.5 percent gain last year after losing nearly 8
percent in 2015. Shaw and Englander fared worse in terms of
performance D.E. Shaw Groups main
multistrategy funds posted some of their smallest gains in
years, while Millennium suffered its worst performance since
2008 but still earned above most of their hedge fund
The full 2017 Rich List and the Second Team, together
ranking the top 50 hedge fund earners, are available on Alpha .