Do you want to work for a hedge fund and haul in millions every year, if not billions over the course of your career? Good luck – most people earn ‘only’ $100-300k who work in the industry.
But then there are the CEOs, CIOs and star traders, blessed with enough talent to seemingly earn hundreds of millions every single year. Below is the breakdown of the richest hedge fund managers in the UK, courtesy of the annual Sunday Times Rich List.
The methodology is not 100% clear, but appears to be based on a combination of assets under management, fund performance and company accounts outlining the highest paid partners at the firms they work for.
But some hedge fund managers either fly below the radar or appear to have been omitted from the list.
What about Ewan Kirk, CEO and founder of quant hedge fund Cantab Capital Partners? He was worth £280m at last count, and partners at the firm shared £76.4m last year alone.
Similarly, there’s no sign of GLG co-founder Pierre Lagrange. He was supposedly worth £500m and even a messy divorce that allegedly cost him £160m should not shunt him out of the top 20. Ex-Lansdowne Partners’ Steve Heinz no longer features in rich lists since leaving the firm in 2014, but at that point he was worth £300m. Meanwhile, Loic Fery from Chenavari Partners is worth around £100m. He might not make the cut with that, but the highest paid partner at Chenavari – presumably him – earned £4.5m in 2014, according to its latest accounts.
There’s also no mention of Claude Marion and Alexis Habib at Spinnaker Capital. Marion and Habib are survivors in the hedge fund world, having set up emerging-markets focused Spinnaker in 1999. They sold a 20% stake to Lehman Brothers for up to $150m in 2007, at which time they had AUM of £2.5bn. Marion runs a charitable foundation which had £3.39m in income in the last year for which results are available (2014). The two men almost certainly made big money in the past, but may now be “winding down” – in 2014, the highest paid director at Spinnaker earned a ‘mere’ £367k according to the company’s accounts.
Another dark horse is Tim Tacchi, founding partner of hedge fund TT International. Tacchi, who owns a large estate in Hampshire, founded TT in 1988 and is another survivor who’s quietly been making money for nearly two decades. The most recently available accounts for TT show that the highest paid individual (whom we assume to be Tacchi) was paid £2m in 2015 and £6m the year before.
Where is Thomas (Tom) Bannatyne from Tudor Capital in the UK? Bannatyne has worked for Tudor since 2001 according to the FCA Register. Before that, he spent nine years at SG Warburg. Tudor paid its 21 partners a total of $59.7m last year.
Where too is Russell Clark of Horseman Capital Management? Clark has also had plenty of time to amass a large amount of wealth, having founded Horseman back in 2006. Horseman’s global fund was one of the best performing in 2015, ending the year up 20%. Horseman’s most recent accounts, for 2015, suggest the highest paid director was paid £150k, the same as the year before. Suggesting the partners are remunerating themselves in other ways.
There are some notable names on the list – Michael Platt, CEO of expansionary hedge fund Bluecrest Capital Management, has seen his wealth increase by £600m over the past year and now tops the list. Now that his firm will be managing only its own money as a ‘family office’ expect this trend to continue.
Alan Howard, founder of Brevan Howard is the biggest loser, having slumped to its first annual loss last year, a fact made even more painful, perhaps, by the fact that his former ‘star trader’ Chris Rokos – who launched his own hedge fund in 2015 – has pocketed an extra £260m.