Raymond Dalio, billionaire and founder of Bridgewater Associates LP, gestures while speaking speaks a Bloomberg Television interview (Photographer: Simon Dawson/Bloomberg)  

Bridgewater, RenTech Make $13 Billion in a Grim Year for Hedge Funds

(Bloomberg) -- Ray Dalio’s Bridgewater Associates and Jim Simons’ Renaissance Technologies beat their rivals in a tough year for hedge funds in 2018, making a combined $13 billion for their investors.

The profits accounted for more than half the money generated by the top 20 managers last year, according to estimates by LCH Investments NV, a fund of hedge funds. Firms outside that top group lost more than $64 billion as stock declines and volatility took their toll.

Bridgewater, RenTech Make $13 Billion in a Grim Year for Hedge Funds

“Most managers in the top 20 either managed to stay out of trouble when equity markets fell sharply toward year-end, or had an investment approach that was not linked to the direction of equity markets,” said Rick Sopher, chairman of LCH.

Both Bridgewater and Renaissance are well-diversified funds that can benefit from rising and falling stocks. The industry as a whole put in its worst performance last year since 2011, with several big names including T. Boone Pickens exiting the market.

Six in ten hedge funds lost money, the highest proportion since the financial crisis, as a sharp spurt in volatility made it tougher to make profitable bets. About 40 percent of the funds tracked by Preqin lost more than 5 percent, with Greenlight Capital losing 34 percent and Third Point Offshore fund declining 11 percent.

Bridgewater also topped LCH’s annual rankings of managers by their overall profits since inception, a listing where the largest and oldest hedge funds tend to do best. Renaissance was one of two new entries to the list, along with Two Sigma.

Top 20 Managers Ranked by Profits Since Launch

CompanyNet Gains
Since Start
2018 GainsLaunch Year
Bridgewater57.88.11975
Soros*43.91973
Citadel30.72.11990
DE Shaw29.121988
Baupost27.40.41983
Och-Ziff26.20.21994
Lone Pine25.9-1.31996
Viking25.4-0.61999
Appaloosa25.2-0.21993
Elliott Associates25.10.81977
Farallon22.71.31987
Millennium22.41.81989
SAC/Point 7221.101992
Brevan Howard18.80.92003
Moore Capital18.3-0.11990
Paulson & Co.17.9-0.21994
Renaissance Tech16.74.72005
King Street Capital15.6-0.11995
Two Sigma15.23.22002
Caxton Associates14.90.21983
Top 20 Managers500.323.2
All Managers1,097-41

Gains are in billions of dollars
* Through Dec. 31, 2017

Source: LCH, eVestment

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