The top earning hedge fund managers of 2012 compiled by Institutional Investor Alpha ranks David Tepper of Appaloosa Management at the top earning hedge fund managers list with a net profit of $2.2 billion in 2012. Ray Dalio comes in at the second place with $1.7 billion in earnings which makes this his third consecutive entry in the top three earners in the past three years. Despite the notorious insider trading scandal, Steve Cohen of S.A.C Capital takes the third spot with $1.4 billion.
A hedge fund manager has to earn at least $200 million to be considered for the top 25 earners list. The total earnings of the top 25 managers for 2012 were $14.14 billion which is in the neighborhood of the $14.4 billion earned in 2011.
Jim Simmons of Renaissance Technologies earned $1.1 billion and landed the 4th spot. Renaissance Institutional Equities was up 8.29 percent in 2012. Kenneth Griffin of Citadel earned $900 million, making him the 5th highest earner. Edward Lampert ranked at No.6 with $750 million, Steve Mandel of Lone Pine Capital ranks at No.7 with $580 million in earnings.
Other names who rank in the top 25 are Chase Coleman of Tiger Global, Paul Tudor of Tudor Investment Corp, Israel Englander of Millennium Management, Phillipe Lanffont of Coatue Management, Robert Citrone of Discovery Capital and O. Andreas Halvorsen of Viking Global. Seems like Tiger cubs team up even when generating big profits.
Leon Cooperman of Omega Advisors ranks at No.8 with $560 million. Cooperman famously showed his disinterest in Apple Inc. (NASDAQ:AAPL) and sold most of his long holding in the tech stock while initiating a position in Facebook Inc (NASDAQ:FB) in 2012. Cooperman’s Omega Overseas Partners was up 25.66 percent in lats year, the fund manages $1.5 billion.
David Shaw of D.E Shaw Group netted $530 million in profits last year, giving him a spot in the 9th position. Dan Loeb of Third Point LLC lands as the 10th highest earner with total profits of $380 million. Loeb’s famous conquests in 2012 were Yahoo! Inc. (NASDAQ:YHOO) and Greek Government Bonds that generated a gain of $500 million for the fund. His flagship fund Third Point Offshore was up 21 percent last year. Third Point Ultra was up 34 percent in 2012, ranking it among the top performing hedge funds of 2012.