Top 5 Highest Paid Hedge Fund Managers (2024)

Hedge fund managers oversee the investments of their respective hedge funds. For hedge fund managers to be successful, they must create a competitive advantage, have a well-defined investment strategy, a high amount of capital, a robust marketing plan, and a strong risk management strategy. Those who become successful make a lot of money annually, like the five highest-paid hedge fund managers in 2023.

Combined, the top 25 hedge fund managers earned $21.5 billion in 2022. These are the top 5 highest-paid managers as of 2023.

Key Takeaways

  • A hedge fund, which is an investment vehicle that aggregates capital from multiple investors, is normally run by professional management companies.
  • Successful hedge fund managers tend to be highly paid and can be worth billions of dollars.
  • In 2023, the five highest-paid hedge fund managers were Ken Griffin of Citadel, Izzy Englander of Millennium Management, Steve Cohen of Point72 Asset Management, David Tepper of Appaloosa Management, and James Simon of Renaissance Technologies.

Hedge Fund Overview

A hedge fund is an investment vehicle and business structure that aggregates capital from multiple investors and invests in securities and other investment instruments. Professional management companies structured as limited partnerships or limited liability companies normally run hedge funds.

Hedge funds differ from mutual funds in that regulators do not cap leverage, and most of the investments are highly liquid.

Ken Griffin

Ken Griffin, the founder of Chicago-based Citadel, has a history of making headlines for buying penthouses and mansions across the globe, purchasing art, and giving away millions of dollars to charity. His spending has been comfortably financed by strong performances from Citadel’s multi-strategy hedge funds.

In 2022, Citadel recorded the most profitable year ever for a hedge fund, with a return of 153%. Griffin's personal earnings were around $4.1 billion. By 2023, his estimated net worth had reached $35 billion. As of 2023, Citadel had over $57 billion in assets under management.

Israel "Izzy" Englander

Izzy Englander of Millennium Management is a 53-year Wall Street veteran and the second-highest-earning hedge fund manager. Millennium now manages over $58 billion in assets; Englander's fund gained 12.6% in 2022. His personal earnings from his work were $3.2 billion. His total net worth was estimated at $11.5 billion at the start of 2023.

Steven Cohen

Steven Cohen's firm, Point72 Asset Management, saw gains of 10.25% in 2022 and earned its investors profits of $2.4 billion. Cohen's earnings in 2022 were estimated at $1.9 billion. His total net worth was estimated at $17.5 billion in 2023. Point72 currently manages more than $27 billion in assets for its clients.

David Tepper

David Tepper's Florida-based Appaloosa Management earned investors a return of about 8.25% in 2022. At the beginning of 2023, Tepper's 2022 earnings were estimated at $1.2 billion. At $18.5 billion, estimated at the same time, his net worth is even higher than Cohen's. Appaloosa assets under management currently total over $14 billion.

James Simons

James Simons isthe founder ofthe highly regarded quantitative hedge fund firmRenaissance Technologies.His total hedge fund income was $1.1 billion in 2022. His total net worth is estimated at $28.1 billion.

Simons retired in 2010 but still has a say on howRenaissance is run and makes money from its fund’s performances. The performance of Renaissance’s oldest fund, Medallion, is unknown as it is only open to owners and employees at the company.

Who Is the Richest Hedge Fund Manager?

Ken Griffin of Citadel is both the richest hedge fund manager and the highest paid. In 2022, he earned $41. billion, and by the beginning of 2023 his net worth was estimated at $35 billion.

How Much Do Hedge Fund Managers Make?

The average salary for a hedge fund manager in the United States is $122,555 per year, with an estimated total pay of $199,035 annually. However, highly successful hedge fund managers can make millions every year, with the median earnings of hedge fund managers reaching $570 million in 2022. The top-earning hedge fund managers, like Ken Griffin and Izzy Englander, earn billions every year.

Why Do Hedge Fund Managers Earn So Much?

Hedge fund managers' earnings are usually based on management fees and a percentage of the profits they earn, known as a performance fee. The more assets they have under management, and the higher the profits they earn for their fund, the more income they make.

The Bottom Line

A hedge fund is an investment vehicle that aggregates capital from multiple investors. These funds are run by professional management companies. The most successful hedge fund managers handle billions of dollars in assets for their clients, and their earnings can reach into the billions as well.

In 2023, the highest-paid hedge fund manager was Ken Griffin of Citadel, who earned $4.1 billion. He was followed by Izzy Englander of Millennium Management, who earned $3.2. billion. The next three highest-paid managers were Steve Cohen of Point72 Asset Management, David Tepper of Appaloosa Management, and James Simon of Renaissance Technologies. Their earnings were all between $1 and $2 billion.

Top 5 Highest Paid Hedge Fund Managers (2024)


Who is the highest paid hedge fund manager ever? ›

Who Is the Richest Hedge Fund Manager? Ken Griffin of Citadel is both the richest hedge fund manager and the highest paid.

What is the salary of a hedge fund manager? ›

Hedge Fund Manager Salaries in India

The average salary for Hedge Fund Manager is ₹17,56,731 per year in the India. The average additional cash compensation for a Hedge Fund Manager in the India is ₹4,03,592, with a range from ₹3,87,604 - ₹4,19,580.

What is the most successful hedge fund? ›

One of the most profitable hedge funds of all times, Citadel generated $16 billion in profits for its investors in 2022, and earned $65.9 billion in net gains since 1990, making it the top-earning hedge fund ever.

Who is the best hedge fund manager of all time? ›

  1. Warren Buffett. Bloomberg via Getty Images. ...
  2. George Soros. The Hungarian-born magnate is the chairman of Soros Fund Management and founder of Quantum Fund. ...
  3. Ray Dalio. ...
  4. John Paulson. ...
  5. Seth Klarman. ...
  6. David Tepper. ...
  7. Steve Cohen. ...
  8. Andreas Halvorsen.

Who are the wealthiest hedge fund managers? ›

All lost money in 2022, but their large net worth enabled them to qualify in 2023 based on gains on their own capital.
  • Chris Hohn. TCI Fund Management. ...
  • Israel (Izzy) Englander. Millennium Management. ...
  • Kenneth Griffin. Citadel. ...
  • David Tepper. Appaloosa Management. ...
  • Steven Cohen. $1.6 Billion. ...
  • Philippe Laffont. ...
  • James Simons. ...
  • (Tied)
Mar 27, 2024

Who is the rich hedge fund guy? ›

Kenneth Cordele Griffin (born October 15, 1968) is an American hedge fund manager, entrepreneur and investor. He is the founder, chief executive officer, co-chief investment officer, and 80% owner of Citadel LLC, a multinational hedge fund.

Which job has the highest salary in the world? ›

  • Chief Executive Officer(CEO) The top position in the hierarchy of any organization is that of the CEO. ...
  • Anesthesiologist. Being the highest paying job in the USA, an Anesthesiologist is among the best-paid jobs in the world. ...
  • General Surgeons. ...
  • Psychiatrist. ...
  • Data Scientists.
Apr 16, 2024

What is the salary of a VP in a hedge fund? ›

As of Apr 20, 2024, the average annual pay for a Vice President Of Hedge Funds in the United States is $157,532 a year. Just in case you need a simple salary calculator, that works out to be approximately $75.74 an hour. This is the equivalent of $3,029/week or $13,127/month.

Why are hedge fund managers so rich? ›

Hedge funds have costly fees that normally include an asset management fee of 1% to 2% and a 20% performance fee on profits. Hedge fund managers eventually end up with more money than their clients because of those fees, so most investors are better off with other investment products.

Who owns the biggest hedge fund? ›

Bridgewater Associates, a global investing force, had $168 billion under management at its peak in 2022, making it not just the world's largest hedge fund, but also more than twice the size of the runner-up.

How many hedge fund billionaires are there? ›

In total, Forbes counts 47 hedge fund billionaires who have a combined net worth of $312 billion, up slightly from the same number in 2022 who were worth $310 billion.

Who is the legendary hedge fund manager? ›

Ray Dalio

Ray Dalio in 1975 founded Bridgewater Associates which went on to become the largest hedge fund in the world. According to Forbes, the hedge fund has over $124 billion in assets under management.

What degree do most hedge fund managers have? ›

Hedge fund managers often have a master's degree or even a Ph. D. in finance, mathematics, economics, financial engineering, quantitative finance, programming, marketing, or business administration. Others have advanced degrees in a specialty such as engineering or accounting.

Which hedge fund has the highest return? ›

Billionaire Christopher Hohn's TCI led the annual ranking by 2023 returns, which were $12.9 billion after fees, while Citadel, Millennium Management and D. E. Shaw, all multi-strategy firms, were the top three hedge funds by lifetime gains.

Do hedge fund managers make millions? ›

The top individual Portfolio Managers can earn hundreds of millions or billions each year. Hedge funds offer a much higher pay ceiling than investment banking, (sometimes) better hours and work/life balance, and the chance to do more interesting work.

Who is the top fund manager in the world? ›

The ranking of the top 10 global managers was almost unchanged from last year. BlackRock retained the top spot with €7.1trn of AUM, with Vanguard, Fidelity, SSGA, Capital Group and JPMAM also keeping their positions.

Is hedge fund manager the highest paying job? ›

Hedge fund manager salaries typically range between $70,000 and $261,000 yearly. The average hourly rate for hedge fund managers is $65.1 per hour. Hedge fund manager salary is impacted by location, education, and experience. Hedge fund managers earn the highest average salary in New York.


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