Bill Ackman’s Pershing Square is back in the world’s top 20 hedge funds.
Bill Ackman’s Pershing Square Capital Management has re-entered the rankings of the world’s top 20 performing hedge funds after being removed from the list in 2015, hitting the jackpot for the New York money manager.
The New York fund, which has $17.9 billion in assets under management (AUM), is expected to generate $3.5 billion worth of net income in 2023, bringing its overall gains up to $18.8 billion since its inception in 2004, a survey by LCH Investments showed.
Pershing Square’s huge gains led to what was described as a “remarkable comeback” for the New York firm in the list of the world’s top 20 performing hedge funds by LCH on behalf of Louis Bacon’s Moore Capital Management. took the last place.
The New York fund was previously excluded from the list nine years ago after suffering a series of large losses from investing in companies such as consumer goods company Procter & Gamble PG.
retail chain JCPenney and multi-level marketing company Herbalife Nutrition HLF;
Now Ackman’s fund is back in the top 20, generating $12.3 billion worth of returns over the past three years. This represents almost two-thirds of the total revenue the company has generated since its founding in 2004.
This puts Pershing Square back on the list of best-performing funds, having generated massive net income worth $67 billion in 2023 alone. This represents 31% of the hedge fund sector’s total profits last year.
| hedge fund | operating assets 1 billion dollars | $1 billion profit by 2023 | overall benefit 1 billion dollars | Year started |
castle | 56.8 | 8.1 | 74.0 | 1990 |
de show | 43.8 | 4.2 | 56.1 | 1988 |
millennium | 61.9 | 5.7 | 56.1 | 1989 |
bridgewater | 72.5 | (2.6) | 55.8 | 1975 |
Elliot | 62.2 | 5.5 | 47.6 | 1977 |
soros | Not applicable | Not applicable | 43.9 | 1973 |
TCI | 50.0 | 12.9 | 41.3 | 2004 |
Viking | 30.5 | 6.0 | 40.9 | 1999 |
construction post | 27.4 | 3.8 | 37.0 | 1983 |
Farallon | 40..4 | 2.6 | 35.7 | 1987 |
lone pine | 15.9 | 4.2 | 35.6 | 1996 |
appaloosa | 17 | 2.7 | 35.0 | 1993 |
SAC/point 72 | 31.0 | 3.0 | 33.0 | 1992 |
And Jeep/Sculptor | 28.7 | 2.3 | 32.2 | 1994 |
letter howard | 35.6 | 0.4 | 28.5 | 2003 |
Egerton | 14 | 2.3 | 23.9 | 1995 |
Davidson Kempner | 37 | 1.8 | 21.0 | 1983 |
king street | 9.5 | 0.9 | 19.5 | 1995 |
Caxton | 13.4 | (0.3) | 19.5 | 1983 |
Pershing Square | 17.9 | 3.5 | 18.8 | 2004 |
For reference, the top 20 funds manage only 18.9% of total assets controlled across the sector, with $665.5 billion worth of assets under management compared to $2.85 trillion for all remaining funds. there is.
However, these huge gains are evident as the top 20 companies generate 83% of all profits generated by hedge funds over the past three years.
In monetary terms, the top 20 have generated $775.4 billion worth of net income since inception, compared to the $862 billion in profits earned by all the remaining hedge funds in the sector.
By percentage, the top 20 companies posted an average return of 10.5% in 2023, compared to an average return of 6.4% for the sector as a whole.
Chris Hohn’s TCI Fund (The Children’s Investment Fund Management) generated $12.9 billion worth of net income last year, reaching its highest profit in 2023, and total net profit since launching in 2004 reached $41.3 billion.
The TCI Fund’s massive gains in 2023 jumped seven spots on the ranking of the most money-making hedge funds since inception, moving it from 14th in 2022 to 7th on this year’s list.
Meanwhile, Ken Griffin’s Citadel LLC has generated higher profits since its inception than any competing hedge fund in the world, with net income reaching $74 billion since 1990, driven by profits of $8.1 billion in 2023.
Over the past 30 years, Citadel has earned a massive $74 billion in profits, well ahead of tied runners-up DE Shaw & Co and Millennium Management. Both companies have generated net profits of $56.1 billion each since they started in 1988 and 1989.
These top three hedge funds have generated nearly two-fifths (38.3%) of the total profits achieved by the hedge fund sector over the past three years, generating KRW 71.2 billion, despite controlling only 4.6% of the total assets under management in the sector. Dollars worth of net profit. .
Rick Sopher, CEO of Edmond de Rothschild Capital Holdings, explained that the huge profits of the world’s best hedge funds are partly the result of their willingness to pay huge sums to secure top talent. “These companies may have to pay more aggressively to attract top talent,” Sopher said.
Ray Dalio’s Bridgewater Associates falls just behind the top three, earning $55.8 billion since it started in 1975, despite dropping from second to fourth on the LCH list with a loss of $2.6 billion in 2023.
Elliott Investment Management jumped one spot from sixth to fifth in the rankings, generating $47.6 billion in net income since its founding in 1977, thanks to net income of $5.5 billion in 2023.
