Top 20 Hedge Funds Achieve Record $65.4 Billion Profit with 10.5% Return

Chris Hohn TCI Fund Management Manager [Photo by TCI Fund Management website]

[Asia Economy Reporter Byunghee Park] Last year, the top 20 hedge funds by returns posted a record-high profit of $65.4 billion, according to major foreign media citing data from fund investment company LCH Investment on the 17th (local time).

However, the average return of the top 20 hedge funds was only 10.5%, significantly lagging behind the 27% increase of the New York stock market's S&P 500 index last year.

According to LCH Investment, the total assets under management of hedge funds amounted to $3.6 trillion, and the total profit of hedge funds last year was $176 billion.

Among these, the total assets under management of the top 20 hedge funds accounted for about 20% of the total, but their profits took more than one-third of the total. The profits of the top 20 hedge funds were $59.3 billion and $63.5 billion in 2019 and 2020, respectively.

The hedge fund with the highest profit was TCI Fund Management, managed by British investor Chris Hohn, which earned $9.5 billion. Ken Griffin's Citadel followed with $8.2 billion in profits.

Tiger Global, led by Chase Coleman, which earned $10.4 billion in 2020 and ranked first in highest returns, recorded a loss of $1.5 billion last year. On the other hand, Millennium Fund, managed by Israeli Englender, which earned $10.2 billion in 2020 and competed with Tiger Global for the highest returns, posted $6.4 billion in profits last year.

Bridgewater, the world's largest hedge fund led by Ray Dalio, earned $5.7 billion last year. Daniel Loeb's Third Point Fund also earned $3.3 billion last year, ranking among the top 20.