Billionaire activist investor Bill Ackman has joined the ranks of the world’s top 20 hedge fund managers for the first time, following a stellar performance in 2014.
His firm Pershing Square delivered $4.5 billion in net gains last year for investors.
Bill Ackman – The only new entrant
In the annual list compiled by LCH Investments, Bill Ackman was placed at number 19 of the top 20 funds based on the total amount of dollar net profits they have made for investors after fees. Pershing Square returned 33% in 2014, and has returned $11.6 billion to investors since its 2004 launch.
Bill Ackman was the only new entrant into the annual list compiled by LCH Investments. Pershing Square is the youngest fund on the list, with Bill Ackman, 48, the youngest manager.
LCH Investments, the world’s oldest fund of hedge funds said the top 20 managers generated $25.2 billion profits net of fees in 2014, while the wider hedge fund industry made net gains of $71 billion.
In 2014, Ackman’s Pershing Square posted a stellar performance led by his bet on Botox maker Allergan.
George Soros retained top position
George Soros remained top of the all-time list with his Quantum fund having reclaimed pole position from Ray Dalio’s Bridgewater the previous year. Quantum generated $2.3 billion in returns last year. The fund retained the top spot, having posted gains of almost $42 billion since its launch in 1973.
John Paulson maintained third place in the rankings, though he was the biggest loser out of all 20 named managers. Paulson & Co posted a loss of $1.9 billion in 2014. Appaloosa Management’s David Tepper stayed put in fifth place, with gains of $500 million in 2014.
Andreas Halvorsen’s Viking gained two places on 2013 to climb from ninth to seventh, and the veteran Paul Singer’s Elliott Associates, rose from 12th to ninth. However, British billionaire Alan Howard of Brevan Howard slipped from eighth to 12th after his $24 billion Master Fund clocked its first loss since its launch in 2003.
Rick Sopher, chairman of LCH, said: “”Hedge fund returns were muted overall in 2014 and net gains for investors at $71 billion (from the wider hedge fund industry) were lower than in the two previous years.”. He added that the large sums made by some managers indicated that profits could be made in a low interest rate environment.
The following table captures the top 20 hedge fund managers as compiled by LCH: