Key Takeaways
- • Soros' Quantum Endowment fund was named the world's most successful hedge fund after gaining $5.5 billion in 2013, bringing total gains since inception to $39.6 billion, according to an LCH Investments study.
- • Quantum overtook Ray Dalio's Bridgewater Pure Alpha, which had held the top spot in the LCH ranking of the top 20 hedge fund managers by net gains.
- • Hedge fund managers made $192 billion of net gains in 2013, with the top 20 managers contributing $55.4 billion net of fees to investors.
- • Equities produced 70 percent of total 2013 gains across the industry, per the report.
- • John Paulson's PFR Gold Fund slipped from third to fourth, gaining $2.6 billion in 2013, while David Tepper's Appaloosa ranked fifth with $4.2 billion in net gains.
Summary
George Soros' Quantum Endowment fund has been named the world's most successful hedge fund after posting $5.5 billion in gains in 2013, lifting its cumulative gains since inception to $39.6 billion, according to a study by LCH Investments. The study ranked the top 20 hedge fund managers by net gains and placed Quantum ahead of Ray Dalio's Bridgewater Pure Alpha.
Soros, known for his 1992 bet against sterling that earned Quantum $1 billion, stepped down from running the fund in 2011. Performance has continued under Chief Investment Officer Scott Bessent, while the fund still benefits from Soros' "continuing oversight," according to Rick Sopher, chairman of LCH Investments and CEO of Edmond de Rothschild Capital Holdings. Sopher attributed the success of Quantum, and of other funds whose chief has left, to a "culture of money-making that deeply permeates" firms, talented managers, and continued oversight or influence from the founder.
Across the industry, hedge fund managers generated $192 billion of net gains in 2013, with the top 20 managers making $55.4 billion net of fees for their investors. Equities were the strongest source of returns, accounting for 70 percent of total gains, according to the report.
John Paulson, known for large gold-related bets that weighed on his PFR Gold Fund's performance last year, slipped from third to fourth in the rankings after gaining $2.6 billion in 2013. David Tepper of Appaloosa ranked fifth with $4.2 billion in 2013 net gains, $1.6 billion more than Paulson. However, Paulson's since-inception net gains of $25.5 billion exceed Tepper's $21.2 billion net of fees.
Soros, known for his 1992 bet against sterling that earned Quantum $1 billion, stepped down from running the fund in 2011. Performance has continued under Chief Investment Officer Scott Bessent, while the fund still benefits from Soros' "continuing oversight," according to Rick Sopher, chairman of LCH Investments and CEO of Edmond de Rothschild Capital Holdings. Sopher attributed the success of Quantum, and of other funds whose chief has left, to a "culture of money-making that deeply permeates" firms, talented managers, and continued oversight or influence from the founder.
Across the industry, hedge fund managers generated $192 billion of net gains in 2013, with the top 20 managers making $55.4 billion net of fees for their investors. Equities were the strongest source of returns, accounting for 70 percent of total gains, according to the report.
John Paulson, known for large gold-related bets that weighed on his PFR Gold Fund's performance last year, slipped from third to fourth in the rankings after gaining $2.6 billion in 2013. David Tepper of Appaloosa ranked fifth with $4.2 billion in 2013 net gains, $1.6 billion more than Paulson. However, Paulson's since-inception net gains of $25.5 billion exceed Tepper's $21.2 billion net of fees.
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