Hedge fund managers aren’t getting the job done–losing money for investors in back-to-back months for the first time in two years. Last year when the S&P 500 was up over 30%, the average hedge fund made only 9.5%. But don’t worry, the hedge fund managers are just fine. The billions of dollars they’ve pocketed in fees won’t have them dining on canned tuna. Let’s not forget that investors pay hedge fund managers a derivative of “2 and 20″–2% on your assets under management and 20% on your profits. That’s 20% on profits that were off by more than 20% relative to the S&P 500. To add insult to injury, check-out the latest compensation numbers for the big shots on Wall Street. These guys are managing money for retired teachers. Where’s the fiduciary responsibility on the pension boards? Let’s not forget the Wall Street crowd would much prefer a pres Hillary or Jeb over rand Paul. That should tell us something. The New York Times reports:
The 25 highest-earning hedge fund managers in the United States took home a total of $21.15 billion in compensation in 2013, according to an annual ranking published on Tuesday by Institutional Investor’s Alpha magazine.
They earned that hefty sum in a year when most hedge fund managers fell short of the market’s returns. The multibillion-dollar payday is the highest since 2010, and it is 50 percent more than in 2012, according to the survey.
David A. Tepper, the 56-year-old founder of Appaloosa Management, maintained his spot atop the list, bringing in $3.5 billion last year, after earning $2.2 billion in 2012. Steven A. Cohen of SAC Capital Advisors ranked No. 2 after pocketing $2.4 billion, while John A. Paulson of Paulson & Company took home $2.3 billion, ranking No. 3.