Hedge Fund Managers Make a Lotta Moolah!!!

06 Apr Hedge Fund Managers Make a Lotta Moolah!!!


Hedge Fund Managers. Some people don’t know what these people do, but all they know is that they make a lot of money for themselves and for their clients. So what exactly is a hedge fund manager? Well, long story short, a hedge fund manager manages money for people and they can make money by speculating whether a trading vehicle (ie. stocks, bonds, Forex…) will increase or decrease in value. Well, last year, the top 10 hedge fund managers, on average made a bazillion dollars due to the strength of the stock market and immense recovery of the global markets. Let me give you a glimpse of what the top 10 earning hedge fund managers made last year from the Absolute Return’s list:

1. John Paulson, Paulson & Co – $4.9bn

2. Ray Dalio, Bridgewater Associates – $3.1bn

3. James Simons, Renaissance Technologies – $2.5bn

4. David Tepper, Appaloosa Management – $2.2bn

5. Steve Cohen, SAC Capital – $1.3bn

6. Eddie Lampert, ESL Investments – $1.1bn

7. Carl Icahn – $900m

8. Bruce Kovner, Caxton Associates – $640m

9. George Soros – $450m

10. Paul Tudor Jones, Tudor Investment – $440m

Did I mention that this is what they personally made?!? Did I also write that they made all this last year?!? I repeat that last year’s top earning hedge fund manager, John Paulson made almost $5B! That’s a billion with a “B”. There you have it people, some insane moolah!

As traders we all aspire to be the next John Paulson.

Btw, did I tell you I changed my name to John?

  • Wayne Mulligan
    Posted at 19:06h, 10 April

    Warning: long comment. I apologize before hand but I want to complement this helpful site with my own experience on wealth management . Right now, I work at a large hedge fund that primarily uses options so I’d say I have some insight into the financial sector. Between my husband and I, we’ve always looked up to Warren Buffet. When Buffett was a young man, he used leverage to became a multimillionaire by forming partnerships and sharing in their profits. He invested very little, but received a large portion of profits in exchange for his brilliant investment decisions. This was a truly win-win situation for him and his partners. S&P 500, in my opinion, is tough to beat if you’re looking for a decent return. Of course, if you’re investing during drug wars and mortgage housing crises..that might be a bit difficult. If you’re looking to day trade, one advice for you: better get your stuff together because you better know more than the brokers and dealers in the NYSC!

  • Jose Trullinger
    Posted at 07:19h, 11 April

    Absolutely smartly written. Real props. Usually, I do not write on blog posts unless I feel a great desire to do so! I’ve worked in Morgan Stanley in my life and just wanted to supplement some information on trading . The biggest new craze now is Forex trading which I see a lot of my customers do. Playing Forex can appear alluring, but the majority of people who try it lose money. All you have to do is do a web search on the words “Forex” and “lose” to see this is the consensus. Forex is similar to what we call a “zero sum” game. You are making a bet with someone else about whether a currency will rise or fall. For every winner there has to be a loser. The net winnings of everyone combined equals zero. If you are smarter than the average player, you may make money. If you are dumber than the average player, you are likely to lose money. Most of the people making the “bets” in Forex are highly trained professionals at banks and other institutions. You are unlikely to beat them at this game. Actually Forex is not quite a zero sum game. It’s a slightly negative sum game as the Forex broker takes a small percentage each time in the spread. It’s a small amount but over a hundred trades, it ends up being a considerable amount of money. So the average player is likely to lose money, and remember the average player is a highly trained professional and probably smarter than you. There is a lot of luck in Forex, and if you play it, you will have some periods of time where you make money. This is usually because you are having a lucky streak, not because you have suddenly become an expert Forex player. However, most people are unwilling to admit their success is due to luck. They become convinced they have a system that works, and lose a lot of money trying to refine it. I would recommend not trying to do Forex at all, unless you are a trained professional. It’s like playing poker with people better than you, with the house constantly taking a small percentage from the pot. I, myself, prefer index funds, particularly the S&P 500.

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