It’s always a good idea to see what kind of money the top hedge fund managers are earning. It helps to think big. But dig a little deeper and see what type of strategy the top 10 earning hedge fund managers for 2010 are using. It can help give you a little bit of clarity to which type of strategy you should pursue. In a world filled with information overload and all sorts of crazy trading systems and ideas here are the guys who made billions.
Here is the list available at from the NY times website. Top Earning Hedge Fund Managers 2010 – SlideShow
Here is the quick rundown:
- John Paulson – $4.9 billion
- Ray Dalio – $3.1 billion
- James Simons – $2.5 billion
- David Tepper – $2.2 billion
- Steven A. Cohen – $1.3 billion
- Edward S. Lampert – $1.1 billion
- Carl Icahn – $900 million
- Bruce Kovner – $640 million
- George Soros – $450 million
- Paul Tudor Jones – $440 million
Now let us see what type of strategies they use. I have done the research and labeled them according to their strategy.
- John Paulson – Global Macro, Merger Arbitrage
- Ray Dalio – Global Macro
- James Simons – Quant, (Global Macro before he turned quant)
- David Tepper – Value, Distressed Debt
- Steven A. Cohen – Long/Short Equity
- Edward S. Lampert – Contrarian Investing, Value
- Carl Icahn – Corporate Raider
- Bruce Kovner – Global Macro
- George Soros – Global Macro
- Paul Tudor Jones – Global Macro
As you can see at least 5 people on the list use some sort of global macro strategy. This gives you proof that it works, if you do it right. Notice how none of these guys are using FAP TURBO forex robot, moving averages stochastic, technical indicator junk. They aren’t using ichimoku kinko hyo. You think they know something?
Now that James Simons guy has an interesting story. He is a quant now, but many years ago he used to be a discretionary global macro trader. That was back in the 1970’s. Eventually he decided to model the data and made the shift from the macro world to entering the quant world. How do I know this? Well you can read the interview he did with Absolute Return magazine right here: James Simons | AR Absolute Return
There are also many other interviews in that Traders Hall of Fame including Paul Tudor Jones, Bruce Kovner, Louis Bacon, George Soros and many more! It is sort of like a mini market wizards interview. Check them out!