How Bloomberg Calculated the Top Hedge Fund Managers' Income
How Bloomberg Calculated the Top Hedge Fund Managers' Income
(Bloomberg) -- Bloomberg’s inaugural ranking of hedge fund manager income shows that the top 10 individuals reaped approximately $7.7 billion last year.
Bloomberg used Securities and Exchange Commission filings, company websites and news reporting to determine assets under management. Figures are for the start of 2018 and don’t include asset inflows and outflows.
Fee details were taken from SEC filings and reporting. Where there was no disclosure, Bloomberg assumed a 2 percent management fee and 20 percent performance fee. Management fees aren’t included as part of the profits.
Some firms run dozens of individual funds and strategies. Bloomberg’s analysis only includes the largest and most material funds within the investment firms.
Some hedge fund managers hold significant assets outside of traditional hedge fund activities, including venture capital or low-fee strategies, which also aren’t included in the analysis.
The information on how much each hedge fund owner had invested in their own funds comes from SEC filings and calculations done previously for the Bloomberg Billionaires Index. Ownership percentages of firms are based on regulatory filings and reporting.
Gross performance fee numbers are calculated using annual return data for funds used in the analysis. In most cases, Bloomberg assumes that half of the performance fees were distributed to employees and reinvested in the firm, while the owners collected the other half.
Several of the year’s best performing hedge funds don’t appear on the list because they have yet to recoup losses incurred in previous years. There are also a number of large hedge fund firms where no return data are available.
To contact the reporter on this story: Tom Maloney in New York at tmaloney38@bloomberg.net
To contact the editors responsible for this story: Pierre Paulden at ppaulden@bloomberg.net, Peter Eichenbaum
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