Fuelled by a tech rebound that helped offset a coronavirus-linked sell-off, the top 20 best-perfuming hedge funds in the world generated the most returns in 2020 compared to the last decade.
The world’s top 20 hedge funds by performance helped clients earn $63.5 billion, according to data from LCH Investments, Edmond de Rothschild group’s fund of fund firm which tracks returns.
This topped 2019’s $53.9 billion and marked the highest total annual returns generated in the last 10 years.
Hedge Fund Leaders
Ray Dalio’s Bridewater Associates retains its ranking as the top hedge fund by returns since inception with $45.5 billion in total returns despite a challenging 2020 that resulted in $12.1 billion of losses.
He is followed by George Soros’ Soros Fund Management; Steve Mandel’s Lone Pine; Ken Griffin’s Citadel; and DE Shaw.
Caveats for a Record-Year
While top hedge funds broke performance records in 2020, profitability did not follow with the industry earnings falling from 2019’s $178 billion.
Interestingly, the average hedge fund last year generated 11.6 percent of returns, according to Hedge Fund Research data, compared to the S&P 500 index’ 16 percent increase.
