SAN FRANCISCO (MarketWatch) — Talk about stagnant wages. In the hedge fund industry, it’s worse. How about wage cuts?
Institutional Investor’s Alpha annual rich list was published
Tuesday. And for the hedge fund billionaires and multimillionaires who
mostly comprise it, the report is sobering. Massive pay reductions were
recorded across the board. David Tepper, founder of Appaloosa
Management, for instance, made only $400 million last year — he’s
averaged $1.36 billion in the 11 years he’s made the IIA list.
As the publication put it, managers made only “$11.62 billion
combined, barely half of the $21.15 billion the top 25 gained the
previous year and roughly equal to what they took home during
To put that in perspective, the top 25 hedge fund managers made just a
little more than half the annual economic output of Cyprus, a nation of
1.2 million people.
Kenneth Griffin, founder and chief executive of Citadel, topped the
list. He made $1.3 billion, mostly on returns from his own investments
in Citadel. His Kensington and Wellington funds returned 18.3%. That
compares with a 14% return for investors in the S&P 500 Index SPX, -0.74% assuming they reinvested their dividends like Griffin apparently does.