Every year we see several different publications try to rank hedge fund managers. According to one publication, the top hedge fund managers of the previous year are the ones who have the highest combination of management fees, performance fees, and investment gains on their personal investments. Most of the time this works fine because successful hedge fund managers can command higher fees and generate higher returns.
There are times when this doesn’t work though. For instance, George Soros had a net worth of $14 Billion in 2009. His fund didn’t perform well at all in 2010, but since he had such a huge wealth, even a few percentage points his funds returned made him $500 Million richer. Does he deserve to be one of the top hedge fund managers of 2010? We don’t think so. Another example is Peter Thiel. Thiel’s Clarium Capital has been performing absolutely horribly and his investors suffered huge losses. Yet, his net worth increased by $300 Million because of his personal investments in Facebook. He doesn’t deserve to be one of the top hedge fund managers of 2010 either.
Insider Monkey, your source for free insider trading data, compiled the list of hedge fund managers who saw losses in their net worth. Several prominent fund managers are in the list. Do these people deserve to be the “worst paid” hedge fund managers of 2010?
Loss in Wealth (Millions)
Charles Munger 700 John Arnold 700 Joshua Harris 300 David Shaw 300 William Conway 300 Daniel D’Aniello 300 Stanley Druckenmiller 300 Henry Kravis 300 Charles Brandes 200 Nelson Peltz 100 George Roberts 100