The best performing hedge fund managers earned $22.4 billion for investors in 2022, according to LCH Investments, the world's oldest fund of hedge funds. This marks the slimmest gains for the firm since its inception in 1969, when it began returning 9.9% annually on average.
The $22.4 billion in profits was generated by the top 20 hedge fund firms, with the lion's share of the profits coming from Ken Griffin's Citadel, which earned $16 billion, according to LCH data. This figure beat the previous record of $15.6 billion set by Elliott Investment Management, a hedge fund that counted Cohen's firm as one of its investors.
Despite the impressive figures, the Investment industry as a whole saw a dip in profits due to the global pandemic. According to LCH data, the top 20 hedge funds churned $22.4 billion in profit after fees. This number is even more impressive when one takes into account that a number of investors suffered from steep losses in 2020.
LCH Investments' impressive performance was also due to its diversified portfolio. The firm has increased its Investments in tech stocks, as well as alternative Investments such as private equity, venture capital, commodities and real estate. This has allowed it to stay ahead of the competition and capture gains in markets that were otherwise volatile.
The firm also follows a rigorous process when it comes to selecting its Investments. LCH's team of experienced analysts use fundamental and quantitative analysis to make sure they select the best Investments available. They also monitor the performance of each Investment on a daily basis to ensure the portfolio remains diversified and well-balanced.
In addition to its Investment strategy, LCH also offers a number of services to its clients, such as research and analysis, portfolio management and financial planning. These services help clients make informed decisions about their Investments and help them manage their portfolios.
To conclude, the impressive performance of LCH Investments in 2020 is a testament to its ability to select Investments that will generate returns for its clients. The firm has continued to outperform the market and has earned its investors $22.4 billion in profits, despite the global pandemic.