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His $3.5 Billion Haul

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Center-left, hedge fund manager David Tepper with Leon Cooperman(L), Maneet Ahuja (CR), and Alan Greenspan (R) in NYC in 2012.

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.

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E.J. Smith - Your Survival Guy

Preparing your investments and family for when disaster strikes.
E.J. Smith is the Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH, where he completed course-work in Practical and Defensive Handgun, Conceal Carry Pistol, Shotguns, Precision Scope Rifle and Kidnapping Prevention. E.J. plays a Yamaha Recording Custom drum set with Zilldjian cymbals. His first drum set was a 5-piece Slingerland with Zilldjians. He grew-up worshiping Neil Peart of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@youngresearch.com. Sign up here to receive all the best content from Richardcyoung.com each week.

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