WEST PALM BEACH, FL (www.hedgeco.net) – The wealthiest hedge fund managers in the world have grown richer in 2004, according to a new list of the richest hedge fund managers unveiled by theInstitutional Investor’s Alpha magazine. According to a new ranking just released by the Alpha Magazine, �The industry’s best paid manager, Edward Lampert, took home $1 Billion in 2004.� Thatrepresents the highest sum earned by a hedge fund manager during the past four years since Alpha began tracking such data.
Lampert was credited last year for helping to create the merger between K-Mart and Sears, Roebuck & CO. Such merger benefited the stock investors in those companies when the value of their holding increased through the appreciation of the stock price. Lampert manages the Greenwich, Connecticut based ESL investments.
According to Alpha, the best 25 Hedge Fund managers in the world earned an average of $251 million. In 2002, the average earned by such managers stood at $110 million. The highest paid Hedge fund managers earned about 25 times the amount paid to the top executives of American corporations. The top executives of American corporations earned an average of about $10 million according to Alpha Magazine.
Alpha Magazine reported that Renaissance Technologies Hedge Fund earned about 25 percent for its investors last year; its manager James Simon earned nearly $670 million. Last year the average hedge fund manager delivered about 9 percent to their investors. Some of the fund managers contacted about the Alpha Magazine salaries for fund managers declined to comment on the report, some said Alpha Magazine derives their pay statistics through an estimation technique.
The number three highest paid fund manager last year according to Alpha Magazine was Renaissance’s Management Simons. Bruce Kovner of Caxton Associates earned $550 million while Steven Cohen, of SAC Capital Advisors took home $450 million. George Soros earned $305 million in 2004, much lower than the $750 million he took home in 2003 when he took the number one top pay spot. Sol Waksman, of Barclay Group said, “I have trouble understanding these salaries.” Adding, �Investors can always redeem and if they didn’t allocate so much capital, the managers wouldn’t be making so much money.�
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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