John Paulson With $3.7 Billion Tops Alpha Magazine's 7th Annual Ranking of the Most...

Wed Apr 16, 2008 9:00am EDT

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John Paulson With $3.7 Billion Tops Alpha Magazine's 7th Annual Ranking of the
Most Highly Paid Fund Managers
Soros and Simons, Second and Third Respectively

NEW YORK, April 16 /PRNewswire/ -- John Paulson, who labored for most of
his career in merger arbitrage, earned a staggering $3.7 billion in 2007
shorting the subprime market. And he needs every bit of it to lead Alpha's
annual ranking of the best-paid hedge fund managers.
    Legendary investors George Soros and James Simons (last year's leader with
$1.7 billion) are nipping at Paulson's heels, each earning nearly $3 billion
in 2007. Paulson, Soros and Simons are among five managers who had more than
$1 billion in earnings last year in what may well prove to be the greatest
display of individual wealth creation in any year in the modern history of
finance.
    The enormous riches being generated by hedge funds comes at a time of
extraordinary distress in financial markets, as millions of homeowners face
potential foreclosure and the U.S. plunges into recession.
    -- The top 25 managers earned, on average, $877 million in 2007, up from
       $532 million in 2006. Five of the managers on this year's list each
       made more in 2007 than the $1.2 billion that JPMorgan Chase & Co.
       agreed to pay for the almost failed 85-year-old Bear Stearns Cos.
    -- When the inaugural list was published in 2002, Soros led the way with
       $700 million, a showing that this year would have put him at No. 9.
       Back then it took $30 million to crack the top 25; this year, $360
       million.
    -- The grand total earned by the top 25 in our 2003 ranking, almost $2.8
       billion, was less than what any of the top three managers made this
       year and less than one fifth of what the top ten made altogether ($16.1
       billion).
    -- Though the list doubled in size this year from 25 to 50, managers
       needed $210 million to qualify for the ranking. Eight of the managers
       are based in the U.K., including GLG Partners co-founders Noam
       Gottesman and Pierre Lagrange, who each made $350 million in earnings.
       (apart from the $1 billion they got in stock and cash when GLG went
       public on the New York Stock Exchange last year in a reverse merger).

    The Top Ten Highest-Paid Hedge Fund Managers:

    1. $3.7 billion     John Paulson          Paulson & Co.
    2. $2.9 billion     George Soros          Soros Fund Management
    3. $2.8 billion     James Simons          Renaissance Technologies Corp.
    4. $1.7 billion     Philip Falcone        Harbinger Capital Partners
    5. $1.5 billion     Kenneth Griffin       Citadel Investment Group
    6. $900 million     Steven Cohen          SAC Capital Advisors
    7. $750 million     Timothy Barakett      Atticus Capital
    8. $710 million     Stephen Mandel Jr.    Lone Pine Capital
    9. $625 million     John Griffin          Blue Ridge Capital
    10. $520 million    O. Andreas Halvorsen  Viking Global Investors

    Alpha uses two components to calculate earnings: managers' share of their
firm's performance and management fees, as well as gains on their own capital.
We exclude, however, any proceeds from the sale of a firm or from a public
offering, which is more a reflection of managers' business acumen than of
their investment prowess.
    For the complete rankings and full article, please visit
www.alphamagazine.com. The article will also be available in the April 2008
edition of Alpha magazine.
SOURCE  Alpha Magazine

Chris Cavanagh, +1-212-224-3369, chriscavanagh@iimagazine.com, for Alpha
Magazine
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