Alpha Magazine Highlights The New Tycoons

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For the second straight year, James Simons leads Alpha Magazine's annual ranking of the world's 25 most highly paid hedge fund managers

Carnegie, Rockefeller, Vanderbilt who? The fortunes of the robber barons of old were nothing compared with the wealth of the new hedge fund elite. Alpha Magazine's ( annual ranking of the world's most highly paid hedge fund managers shows that today's rich keep getting richer. Three managers on this year's list each made more than $1 billion in 2006.

Former math professor James Simons, founder of East Setauket, New York-based Renaissance Technologies Corp., hauled in an estimated $1.7 billion in 2006, to lead Alpha's list of the world's best-paid hedge fund managers for the second year in a row. (In 2005 he took home $1.5 billion.) Citadel Investment Group's Kenneth Griffin and ESL Investments' Edward Lampert were close behind Simons, making $1.4 billion and $1.3 billion, respectively, to rank No. 2 and No. 3 on this year's list.

Alpha's list of top 25 moneymakers is among the most exclusive of all clubs. Just to make the cut, a manager had to earn $240 million. T. Boone Pickens Jr., who last year broke the $1 billion barrier with Simons, drops to No. 15 on this year's list with $340 million in earnings. In total the 25 people on the list hauled in more than $14 billion in 2006; the average take was $570 million, up 57 percent from 2005 and 127 percent from 2004.

The top ten moneymakers in the hedge fund industry for 2006 are:

1 $1.7 billion James Simons Renaissance Technologies Corp.
2 $1.4 billion Kenneth Griffin Citadel Investment Group
3 $1.3 billion Edward Lampert ESL Investments
4 $950 million George Soros Soros Fund Management
5 $900 million Steven Cohen SAC Capital Advisors
6 $715 million Bruce Kovner Caxton Associates
7 $690 million Paul Tudor Jones II Tudor Investment Corp.
8 $675 million Timothy Barakett Atticus Capital
9 $670 million David Tepper Appaloosa Management
10 $600 million Carl Icahn Icahn Partners

Alpha's formula for determining which hedge fund managers earned the most is based on two components: the gains on their own capital in their funds and their share of their firm's management and performance fees.
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