How does one measure a hedge fund manager and determine his (it’s almost always his) place in the pantheon relative to his peers? I like the idea of picking the very best of all time based on how much they’ve earned in profits, on an absolute basis. This metric would preclude younger fund managers who haven’t had the chance to get there yet – but shouldn’t it? We’re talking about the G.O.A.T. fund managers, there should be a longevity requirement to make the list, no?
James Mackintosh informs us that George Soros’s legendary Quantum Fund has just taken the top spot away from Ray Dalio’s Bridgewater over the last year. George Soros added another $5.5 billion in profits during 2013 while Dalio somehow managed to run in place, missing the entire rally in global equity markets. Soros has done this again and again in so many different market environments and economic epochs that it’s bordering on witchcraft at this point. As one commenter opined, “Soros sees the future playing out in his own head.” As another remarked, “he’s a freak of nature.”
Here’s the Top 10 hedge fund managers of all time chart from Mackintosh’s piece at the FT, in which he reminds us that 43% of all the investors in 7000 hedge funds were made by just the top twenty hedge funds. Quite an industry…