These Are the World’s Top-Performing Hedge Funds of 2020
Pending tax demand piles up as the Income Tax Department does not write off the arrears that can’t be recovered. (Photographer: Luke Sharrett/Bloomberg)

These Are the World’s Top-Performing Hedge Funds of 2020

Tiger Global Management placed first in a world hedge-fund ranking and quant powerhouse Renaissance Technologies was ousted, another sign that trading conditions favored human stock-pickers over algorithms.

The industry reaped $127 billion last year, with some of the biggest firms dominated by human traders racking up record profits, according to estimates disclosed Monday by LCH Investments, a fund of hedge funds. Chase Coleman’s Tiger Global generated $10.4 billion for clients, after fees, and Izzy Englander’s Millennium Management was a close second, with $10.2 billion.

Renaissance, founded by billionaire mathematician Jim Simons, fell from the ranking of 20 firms after some of its public funds lost more than 30% last year. In 2019, it placed third on LCH’s list, which focuses on managers with most total profit since inception and is designed to favor the largest and oldest hedge funds.

The ranking reflects the most-prominent theme of a tumultuous year, with hedge funds making or losing huge sums of money as the Covid-19 pandemic ravaged the globe and central banks unleashed unprecedented stimulus to contain the economic carnage. The biggest of them all, Ray Dalio’s Bridgewater Associates, incurred $12.1 billion of losses.

“In navigating the especially volatile markets of 2020, talented individual managers with vision and flexibility performed better than programmed machines,” LCH Chairman Rick Sopher said in a statement.

His firm’s annual survey is just one way to look at the industry’s profitability, as it may exclude newer or smaller hedge funds that outperformed everyone in the top 20 on a percentage basis.

The 20 managers in the ranking oversaw about 17% of global hedge funds assets and produced roughly 43% of the $1.4 trillion in profit the industry has generated since inception, according to LCH.

Top 20 Managers Ranked by Profits in 2020

ManagerNet Gains Since Start2020 GainsLaunch Year
Tiger Global26.510.42001
Millennium36.010.21989
Lone Pine42.39.11996
Viking36.67.01999
Citadel41.86.21990
D.E. Shaw37.35.41988
Elliott Associates33.35.01977
TCI27.04.22004
Egerton22.63.71995
Brevan Howard22.53.02003
Farallon29.32.91987
SAC/Point7225.92.51992
Och-Ziff/Sculptor29.82.31994
Appaloosa28.61.91993
King Street Capital17.61.61995
Baupost31.31.51983
Paulson & Co.*17.8-1.21994
Bridgewater46.5-12.11975
Soros Fund Management**43.9NA1973
Moore Capital***18.6NA1990
Top 20 Managers615.163.5
All Managers1,422127

NOTE: Gains are in billions of dollars; *Through June 30, 2020; **Through Dec. 31, 2017; ***Through Dec. 31, 2019. Source: LCH Investments

©2021 Bloomberg L.P.

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