Serving the Quantitative Finance Community

 
User avatar
TraderJoe
Topic Author
Posts: 11048
Joined: February 1st, 2005, 11:21 pm

Hedge Funds

July 10th, 2005, 12:41 am

There has been alot of negative press about hedge funds haemorrhaging money of late, and yet in this article only a year ago, it appears as if several people are doing quite well out of them. Can anyone bring us up to date on the current state of play?Bloomberg, July 20, 2004>snipThree hedge fund managers made at least $500 million last year, led by Hungarian-born George Soros andDavid Tepper of Appaloosa Management, according to a survey by Institutional Investor's Alpha magazine.Below is a table of the top 10 earners in the hedge fund industry in 2003, according to Institutional Investor:George Soros $750 million Soros Fund ManagementDavid Tepper $510 million Appaloosa ManagementJames Simons $500 million Renaissance TechnologiesEdward Lampert $420 million ESL InvestmentsSteven Cohen $350 million SAC Capital AdvisorsBruce Kovner $350 million Caxton AssociatesPaul Tudor Jones $300 million Tudor InvestmentKenneth Griffin $230 million Citadel InvestmentDaniel Och $150 million OCH-Ziff Capital ManagementLeon Cooperman $145 million Omega Advisors
Last edited by TraderJoe on July 9th, 2005, 10:00 pm, edited 1 time in total.
 
User avatar
fars1d3s
Posts: 451
Joined: August 14th, 2004, 12:28 pm

Hedge Funds

July 10th, 2005, 12:54 am

I am happy for all of them. Good luck.
 
User avatar
Geist
Posts: 161
Joined: May 16th, 2003, 10:25 am

Hedge Funds

July 10th, 2005, 9:07 am

Ed Lampert paid himself 1bn last year. Imagine the tax bill. Poor Ed...
 
User avatar
JamesH83
Posts: 817
Joined: June 25th, 2003, 11:38 pm

Hedge Funds

July 10th, 2005, 5:38 pm

I need a full english breakfast.Where can I buy one in chicago?
 
User avatar
nazzdack
Posts: 256
Joined: March 3rd, 2004, 9:50 am

Hedge Funds

July 10th, 2005, 6:58 pm

Where? Denny's or IHOP?.............. How long before you have the 2004 compensation figures? It has all of the "usual suspects" on it. Regarding 2005, it should be a great year for the best people but overall it should be horrible because of the volatility contraction. The energy & real estate guys should get a lot of glory but the convertible and high-yield bond funds should be mediocre. People will accuse hedge funds of being more like mutual funds. We'll see.
 
User avatar
TraderJoe
Topic Author
Posts: 11048
Joined: February 1st, 2005, 11:21 pm

Hedge Funds

July 10th, 2005, 8:05 pm

The Trader Monthly 100The highest earning hedge-fund traders in 2004: part one of the list Issue: June/July 2005 , Page 70 Stevie CohenCity: Stamford, Connecticut Firm: SAC Capital Advisors Age: 48 He looks a little like George from Seinfeld and dresses as plainly as a suburban accountant, but make no mistake: Stevie Cohen is the master of the hedge-fund universe, and he made more money than anyone else on the Trader Monthly 100 for the second year running. Intensely secretive – Cohen was said to have been annoyed when the New York Times recently ran a front-page story highlighting his art collection, and unsurprisingly, he declined to be interviewed for this story – the man behind 13-year-old SAC Capital commands what might be the most powerful trading force on the planet. Because the firm has been so successful, Cohen is comfortable taking half the profits from the few clients lucky enough to have access to his greatness – but in truth, he hardly has any clients left. Cohen, who overall produced returns somewhere in the mid-20 percent range last year, is mostly trading his and other SAC employees' money. "In what was a difficult year for the markets, Stevie is trading better than ever," says one industry insider. What does Cohen do with all his cash? His 14-acre Greenwich, Connecticut, estate is referred to locally as "Chelsea Piers" for its array of sporting amusements. Then, of course, there's that art collection: enough Warhol and Pollock to earn him a seat on the board of the Museum of Modern Art. And like many of the hedge-fund elite, Cohen donates a considerable amount to charity. Estimated income: $600-$650 million --------------------------------------------------------------------------------James SimonsCity: East Setauket, New York Firm: Renaissance Technologies Corp. Age: 67 Renaissance's Long Island retreat more resembles a college campus than a hedge-fund hub, and Simons, a former math professor with a Ph.D. from Berkeley who was once fired from a government defense job for protesting Vietnam, is not your typical tycoon. But industry insiders say that Renaissance's Medallion fund, with its black-box quantitative strategies, had another phenomenal year. Simons's cut of the profits: more than 35 percent. Estimated income: $500-$550 million --------------------------------------------------------------------------------Paul Tudor Jones IICity: Greenwich, Connecticut Firm: Tudor Investment Corp. Age: 50 Even when other hedge funds stumble, Jones stays near the front of the pack. In the nearly 20 years since he started his fund, the former New York Cotton Exchange floor trader has never had a down year. The past 12 months were no exception -- insiders say Tudor Investment, bolstered by returns in the energy markets, kicked ass. Well-liked on Wall Street and known for his philanthropy (he launched the Robin Hood Foundation in 1988), Jones is a Hemingway-esque sportsman. Among his extravagances: a game ranch in Zimbabwe. When not on safari, Jones, who loves the Florida Everglades, is big on conservation projects. Estimated income: $500-$550 million --------------------------------------------------------------------------------Eddie LampertCity: Greenwich, Connecticut Firm: ESL Partners Age: 42 IN 2003, Eddie Lampert was kidnapped. After 30 hours, he was able to talk his way out of the motel room in which he was being held hostage. Last year, the former head of Goldman Sachs's risk-arbitrage desk was putting his dealmaking skills to different use: He made headlines orchestrating the merger of Sears with Kmart, which he had previously led out of its financial despair. Lampert, who started ESL in 1988 with funding from Richard Rainwater, epitomizes the new generation of hedge-fund managers who meld trading, private equity, leveraged buyout and traditional hedge-fund management. Estimated income: $450-$500 million --------------------------------------------------------------------------------Bruce KovnerCity: New York Firm: Caxton Associates Age: 60 Still involved in day-to-day trading, Kovner and his $10 billion global macro operation did so well in 2004 that Caxton bumped up its fees from 2-and-20 to 3-and-30. The firm was particularly successful in energy trading -- at least one of his senior energy traders retired early. Kovner, however, is going strong. A math professor turned Wall Street profiteer, Kovner is known for his neoconservative politics; the man who shuns the press is one of the financial muscles behind the New York Sun newspaper. His varied career also involved a stint driving a yellow cab and studying the harpsichord at Juilliard before making it big trading soybean futures. Estimated income: $300-$350 million --------------------------------------------------------------------------------James PallottaCity: Boston Firm: Tudor Investment Corp. Age: 46 Racking up an 18 percent gain in 2004, Pallotta's more than $6 billion Raptor Global Portfolio generated this hedge-fund pro a fat check in February. "He is the top-paid guy at the firm after Paul Tudor Jones," says one insider. Pallotta joined Jones in 1993 after a stint at Essex Investment Management, where he was director of research, when Jones was seeking to diversify the firm away from the futures and commodities markets. Estimated income: $200-$250 million --------------------------------------------------------------------------------Stanley DruckenmillerCity: New York Firm: Duquesne Capital Management Age: 51 Reports on how Druckenmiller and his $6 billion Duquesne Capital hedge-fund operation performed in 2004 are mixed. One knowledgeable industry veteran tells us his returns were in the 25 percent range. The former chief investment officer for George Soros, Druckenmiller has shown a distinct willingness to take aggressive positions even when markets are not necessarily behaving according to conventional wisdom. Estimated income: $150-$200 million --------------------------------------------------------------------------------Jeffrey GendellCity: Greenwich, ConnecticutFirm: Tontine PartnersAge: 45Making a 100 percent return on $1 billion-plus in assets is astonishing anytime, but in a year when even the superstars were thrilled to be around 40 percent, the secretive Gendell was shooting the moon at Tontine, thanks to a big energy push. Indeed, he has proved a consistent performer: In 2003, his overseas long/short fund boasted returns of 153 percent.Estimated income: $150-$200 million --------------------------------------------------------------------------------Richard PerryCity: New York Firm: Perry Capital Age: 50 Founded in 1988 by the former Goldman trader, Perry Capital has some $11 billion under management. With offices in New York, London and Hong Kong, the firm is pushing into middle-market lending with its recent purchase of Capital Factors. Event-driven arbitrage and distressed debt remain Perry's strengths. Estimated income: $150-$200 million --------------------------------------------------------------------------------John ArnoldCity: Houston Firm: Centaurus Energy Age: 31 Arnold made a name for himself as the Enron trader. While he got his share of roasting in the press, the natural-gas trader didn't do anything criminal -- he just made hundreds of millions of dollars in profits for the infamous firm. He started Centaurus in 2002. Energy traders say his first full year was phenomenal, and 2004 was even better. Centaurus is estimated to have produced as much as $800 million in profits.Estimated income: $100 - $150 million --------------------------------------------------------------------------------Louis BaconCity: New York Firm: Moore Capital Management Age: 48 Another hedge-fund manager who shuns publicity, Bacon had a strong 2004 -- notching a 34 percent return -- following on the heels of a phenomenal performance in 2003. Among other bets, the $7 billion global macro machine went long the S&P 500 toward the end of the year, catching (if not propelling) the late rally. Estimated income: $100 - $150 million --------------------------------------------------------------------------------Richard ChiltonCity: Stamford, Connecticut, and New York Firm: Chilton Investment Company Age: 46 With offices in New York and Stamford, Chilton runs four long/short strategies. His flagship U.S. portfolio has an annualized return of 19 percent, net of fees, since its 1992 inception. He's yet another hedge-fund heavy who sits on the board of Paul Tudor Jones's Robin Hood Foundation. Estimated income: $100 - $150 million --------------------------------------------------------------------------------David TepperCity: Chatham, New Jersey Firm: Appaloosa Management Age: 45 The former Goldman Sachs junk-bond trader who shot the lights out in 2003 and then gave back $1 billion to clients had another strong year in 2004. His Appaloosa fund had returns of around 40 percent last year, and once again he has given back money to his clients (another $700 million), bringing his assets closer to $2 billion -- the level at which he would like to remain. Estimated income: $100-$150 million --------------------------------------------------------------------------------Mark KingdonCity: New York Firm: Kingdon Capital Management Corp. Age: 56 A third-degree black belt in tae kwan do, Kingdon oversees a $3 billion portfolio of stocks, bonds, currencies and options. His first job in the industry was in the pension-asset division of AT&T; he later joined a New York money manager. One of the industry's living legends, he has a lesser-known spiritual side. Estimated income: $75 - $100 million --------------------------------------------------------------------------------Stephen MandelCity: Greenwich, Connecticut Firm: Lone Pine Capital Age: 49 One of several Tiger Management alumni who have launched their own hedge funds, Mandel has garnered $6 billion in assets for his Lone Pine Capital. In a difficult market environment in 2004, Mandel's returns were above average. He was part of a group of long/short hedge-fund managers to open long-only funds and is currently searching for opportunities in Asia. He recently gave significant money to Bill Clinton's global AIDS-prevention initiative. Estimated income: $75-$100 million --------------------------------------------------------------------------------Lief RosenblattCity: New York Firm: Satellite Asset Management Age: 51 Founded in 1999 by former Soros star Rosenblatt and two other partners, Satellite now has more than $5 billion in assets, and returns were roughly 25 percent in 2004, according to insiders. Before joining Soros, the Rhodes scholar led the risk-arbitrage department at Plaza Securities in New York. He also has a law degree from Harvard. "Satellite is one of the top hedge funds in the world," says one Wall Street trader. Estimated income: $75-$100 million --------------------------------------------------------------------------------Barry S. RosensteinCity: San Francisco Firm: Jana Partners Age: 46 Viewed as sharp and down-to-earth, Rosenstein is part of a group of activist hedge-fund managers publicly browbeating corporate officers to change. In 2004, his most notable coup was teaming up with Third Point's Dan Loeb and forcing the sale of software maker InterCept. Earlier this year, Rosenstein joined with the legendary Carl Icahn and went after Kerr-McGee. The fund has around $3 billion in assets and had 30 percent returns in 2004, before fees. Estimated income: $75-$100 million Where's Paul?
Last edited by TraderJoe on July 9th, 2005, 10:00 pm, edited 1 time in total.
 
User avatar
marksct
Posts: 2
Joined: May 2nd, 2003, 1:24 pm

Hedge Funds

July 20th, 2005, 3:24 pm

Well as for my own experience working at SAC for five years as risk manager. I calculated trading P&L, exposures, commissions, etc on a regular basis, I find that most of the information you hear in these publications about the amount of money made is mostly incorrect. Most of these publications are just taking pokes at a number when in reality they will never know. They do this in order to intrique the reader.I can't say whether they are over or under stated, but that they are in most cases not in the zone.M
 
User avatar
NorthernJohn
Posts: 632
Joined: June 2nd, 2003, 9:07 am

Hedge Funds

July 22nd, 2005, 10:27 pm

The latest figures I have seen, for the industry as a whole, had the mean hedge fund manager's salary as $400,000.So, quite a lot more than at the local car wash, but a very long way below what most people think that they are on.
 
User avatar
erstwhile
Posts: 904
Joined: March 3rd, 2003, 3:18 pm

Hedge Funds

July 24th, 2005, 1:05 pm

TraderJoe - those are stunning returns, especially seeing how much money they are running.there is also a fund called millennium that has a very high sharpe ratio and seems to produce superb returns year after year.i guess these results are often down to one fantastic trader or trading manager.i guess these guys have got genius strategies that nobody else has copied (yet)...
 
User avatar
TraderJoe
Topic Author
Posts: 11048
Joined: February 1st, 2005, 11:21 pm

Hedge Funds

July 24th, 2005, 3:46 pm

QuoteOriginally posted by: erstwhileTraderJoe - those are stunning returns, especially seeing how much money they are running.there is also a fund called millennium that has a very high sharpe ratio and seems to produce superb returns year after year.i guess these results are often down to one fantastic trader or trading manager.i guess these guys have got genius strategies that nobody else has copied (yet)...Yeah, now I just need to to set one up... .
 
User avatar
TraderJoe
Topic Author
Posts: 11048
Joined: February 1st, 2005, 11:21 pm

Hedge Funds

September 23rd, 2005, 2:20 pm

Hedge fund regulation and advisory. QuoteYesterday, the Federal Reserve Bank of New York met with representatives of 14 banks, as well as regulators from the United States and overseas, to discuss cleaning up the processing of the contracts in the booming market for credit derivatives. There were $8.4 trillion such contracts outstanding at the end of last year, up from $919 billion just three years earlier, according to the International Swaps and Derivatives Association, a trade group.
Last edited by TraderJoe on September 26th, 2005, 10:00 pm, edited 1 time in total.
 
User avatar
dc
Posts: 731
Joined: January 8th, 2002, 8:52 pm

Hedge Funds

September 24th, 2005, 6:26 am

Re: Can anyone bring us up to date on the current state of play?I will be surprised if we see the real eye-popping paychecks at the top of the list this year...
 
User avatar
TraderJoe
Topic Author
Posts: 11048
Joined: February 1st, 2005, 11:21 pm

Hedge Funds

September 28th, 2005, 11:30 am

Cerebus or bust...Very interesting article.QuoteThe Feinberg Way, like the methods of superfueled hedge-fund financiers such as Eddie Lampert and Wilbur Ross, has the potential to remake the corporate landscape as profoundly as the leveraged-buyout mavens, corporate raiders, and conglomerateurs did in earlier generations. With their access to huge amounts of cheap capital and ability to operate largely outside traditional markets -- and the view of regulators -- Feinberg and his cohorts could soon set their sights on even the biggest companies caught in a downdraft or struggling with change.
Last edited by TraderJoe on September 28th, 2005, 10:00 pm, edited 1 time in total.
 
User avatar
TraderJoe
Topic Author
Posts: 11048
Joined: February 1st, 2005, 11:21 pm

Hedge Funds

September 29th, 2005, 2:13 am

I know this is four months old now, but...City hedge funds head for disaster.
 
User avatar
TraderJoe
Topic Author
Posts: 11048
Joined: February 1st, 2005, 11:21 pm

Hedge Funds

October 6th, 2005, 2:51 pm

Anatomy of a Hedge Fund.