Ray Dalio had a nightmare 2020.
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Ray Dalio lost $ 12.1 billion to investors in his company Bridgewater Associates in 2020, a year in which the world’s top 20 hedge funds achieved their best returns in a decade thanks to the rapid rebound in stocks in the spring.
Nonetheless, Dalio is still the best-performing hedge fund manager of all time, with net earnings of $ 46.5 billion since inception, according to the latest rankings from LCH Investments, part of the Edmond de Rothschild group.
The top 20 managers of all time earned $ 63.5 billion for investors in 2020, LCH said, the best returns for the group in 10 years. That was half of the $ 127 billion the industry as a whole created for investors, up from $ 178 billion in 2019.
“In 2020, the best hedge fund managers generated substantial returns while limiting downside risk, which is exactly what they should do,” LCH President Rick Sopher said in a statement. “2020 was the year of hedge funds”.
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The most successful hedge funds have made huge profits from the strong rebound in stocks. Equity markets recovered quickly from the March crash as central banks such as the US Federal Reserve took unprecedented steps to support economies.
The S&P 500 it has risen about 70% from its low in late March, fueled by tech “growth” stocks like Amazon, Netflix, Apple and Google.
Despite the best earnings in a decade for the top 20, hedge funds averaged 11.6% in 2020, according to data from Hedge Fund Research quoted by Reuters. This was less than the 16% efficiency of the S&P 500.
Dalio’s Bridgewater suffered heavy losses after failing to position itself adequately during the recession and subsequent rebound.
“We have never had a significant decline, all positive years, but we knew that one day would come,” Dalio he told Bloomberg TV in the month of September. “We missed the waning pandemic, and that’s the reality.”
Yet Bridgewater still has most of the assets under management of any hedge fund with data available, LCH’s annual report says, at $ 101.9 billion.
Renaissance Technologies also had a bad year, knocking it off LCH’s annual list of top 20 hedge fund managers of all time.
“The conditions favored the man over the machine, and it was noteworthy that Renaissance Technologies, a manager driven by the machine, came out of the top 20,” said Sopher.
Chase Coleman’s hedge fund Tiger Global entered LCH’s all-time top 20 with earnings of $ 10.4 billion. This was more than any other of the top 20 funds made last year.
Israel England’s Millennium grossed $ 10.2 billion in 2020. Steve Mandel’s Lone Pine was not far behind with $ 9.1 billion, while Andreas Halvorsen’s Viking fund brought in $ 7 billion for investors.
Sopher said Tiger Global’s earnings were “generated substantially by its long-side net equity strategy”.
Tiger Global, Viking and Lone Pine are all founders of the Tiger Management family of funds founded by Julian Robertson.
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