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)

FAQs

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. In 2022, he earned $41. billion, and by the beginning of 2023 his net worth was estimated at $35 billion.

What is the highest paying job in a hedge fund? ›

What are Top 5 Best Paying Related Hedge Fund Jobs in the U.S.
Job TitleAnnual SalaryMonthly Pay
Hedge Fund Attorney$175,207$14,600
Cfo Hedge Fund$157,532$13,127
Private Equity Fund Controller$154,999$12,916
Hedge Fund General Counsel$151,643$12,636
1 more row

Is Hegemony Man Ackman number 7 on Bloomberg's list of top earning managers? ›

The Pershing Square Capital Management founder made $610 million last year, after barely touching his portfolio of just 10 stocks. The total landed Ackman at No. 7 on Bloomberg's annual list of the best-paid hedge fund founders, his highest-ever position. He failed to crack the top 15 in 2022.

What is the salary of a hedge fund manager? ›

The national average salary for a Hedge fund manager is ₹14,15,331 in India.

Who is the number one hedge fund manager? ›

Rankings by Total Managed AUM
RankProfileType
1.Bridgewater Associates, LPHedge Fund Manager
2.Renaissance Technologies LLCHedge Fund Manager
3.Garda Capital PartnersHedge Fund Manager
4.ExodusPoint Capital ManagementHedge Fund Manager
94 more rows

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

As of Apr 14, 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.

Can hedge fund managers make millions? ›

The money is a big draw as well: if you're at the right fund and you perform well, you can earn into the mid-six-figures, up to $1 million+, even as a junior-level employee. The top individual Portfolio Managers can earn hundreds of millions or billions each year.

What is the best degree to work in a hedge fund? ›

degree in finance is ideal for a variety of hedge fund jobs, but your major will matter. Bachelor of Science degrees in mathematics, accounting, physics, computer science, and even engineering are also useful, given the recent rise in algorithmic trading.

Why is Bill Ackman so famous? ›

William Albert Ackman (born May 11, 1966) is an American billionaire hedge fund manager who is the founder and chief executive officer of Pershing Square Capital Management, a hedge fund management company. His investment approach has made him an activist investor.

How big is Bill Ackman's fund? ›

Ackman's Pershing Square Capital Management currently oversees $18 billion in assets, the bulk in a fund that is publicly listed in Europe. Ackman, 57, recently ventured beyond telling companies how to run their businesses to focusing on antisemitism on college campuses.

What made Bill Ackman famous? ›

The greatest bet of Ackman's career, and arguably one of the best hedge fund trades of all time, was Pershing Square's turnaround of troubled mall operator General Growth Properties from the brink of bankruptcy, netted the hedge fund a whopping $1.6 billion return on a $60 million investment.

Why are hedge fund managers so rich? ›

Hedge fund managers typically earn above-average compensation, often from a two-and-twenty fee structure. Hedge fund managers typically specialize in a particular investment strategy that they then use to power their fund portfolio's mandate for profits.

What is the highest paid job in America? ›

Highest-Paying Careers
RankOccupation2022 Median Wages
Employment column two Annual
1Obstetricians and Gynecologists$239,200+
1Oral and Maxillofacial Surgeons$239,200+
1Orthopedic Surgeons, Except Pediatric$239,200+
7 more rows

What degree do hedge fund managers get? ›

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.

Who is the richest Wall Street person? ›

Warren Edward Buffett

How much of Citadel does Ken Griffin own? ›

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.

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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