London-based fund of funds LCH Investments, a subsidiary of Edmond de Rothschild Capital Holdings Limited, recently released its annual top 20 “most successful money managers” list for 2015.
The list measures net gains, after fees, of hedge fund managers since their respective fund’s inception. We’ve included the top five out of Business Insider’s seven hedge fund managers.
Collectively, all seven titans have made their investors net gains of $199.5 billion since they began their funds. Last year, they raked in $5.1 billion as a group. Two of the top fund managers had a losing year in 2015.7. John Paulson (Paulson & Co.) Reuters
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Net gains in 2015: -$2.1 billion
Net gains since inception: $21.4 billion (1994)
Fund’s assets under management: $15.6 billion
Paulson’s net worth: $11.4 billion
Highlights: In 2015, John Paulson fell from the No. 3 spot on the list to No. 7. He became famous for his 2007 bet against subprime housing; it made him and his investors billions. Since then his returns have been volatile, and his fund’s assets have dropped from a peak of $38 billion in 2011 to about $15.6 billion. Just last month Paulson pledged his personal wealth as collateral for a line of credit for his fund from HSBC USA.
6. Stephen Mandel (Lone Pine Capital)
Net gains in 2015: $1.2 billion
Net gains since inception: $22.4 billion (1996)
Fund’s assets under management: $29.5 billion
Mandel’s net worth: $2.4 billion
Highlights: Lone Pine Capital is led by the billionaire Steve Mandel, who worked at legendary hedge fund Tiger Management early in his career. The fund is now part of a group of funds launched by Tiger alumni known as “Tiger Cubs.”
Mandel is betting on companies that dominate the web in 2016, according to an investor letter.
Lone Pine’s Cascade fund, its long-only fund, rose 1.4% in the fourth quarter to end 2015 down 1.2%. Meanwhile, Lone Pine’s Cyprus fund rose 4.6% in the fourth quarter, ending the year up 8.7%, while its Kauri fund rose 4.4% in the quarter to end 2015 up 8.9%.
As of the end of 2015, the Cascade fund’s 10 largest long-stock positions were Microsoft, Amazon, Tencent Holding, Facebook, Visa, Dollar Tree Stores, Williams Companies, FleetCor Technologies, JD.com, and Charter Communications. The fund trimmed some of its stake in embattled Canadian drug company Valeant Pharmaceuticals.
4. Seth Klarman (The Baupost Group)
Net gains in 2015: -$800 million
Net gains since inception: $22.6 billion (1983)
Fund’s assets under management: $27 billion
Klarman’s net worth: $1.38 billion
Highlights: In 2015, The Baupost Group had its third losing year in its 33-year history. Klarman described it as a year of “dodging relentlessly falling knives.”
The fund’s public-investments portfolio fell 6.7% in 2015, while the fund’s private investments gained 2.4%, according to a separate investor update seen by Business Insider. The fund’s public-investment returns were largely dragged down by Cheniere Energy, Micron Technology, Keryx Biopharmaceuticals, and Antero Resources.
3. David Tepper (Appaloosa)
Net gains since inception: $22.8 billion (1993)
Fund’s assets under management: $17.9 billion
Tepper’s net worth: $11.6 billion
Highlights: Lately, Tepper has been going after embattled solar-energy company SunEdison, the parent company of one of his holdings. He’s taken a stake in TerraForm Power, one SunEdison’s yieldcos.
This article was first published at Business Insider, by Julia La Roche
