Activist Investors Losing To Quants
The hedge fund quant funds are topping the activist investors these days. Computers really are more powerful than man. The quants, which use computers to trade, topped activists in 2015.
The 25 highest paid hedge fund managers, which collectively made $13 billion in 2015, are mostly quants these days, as they continue to outperform their man-managed counterparts.
Jim Simons, which runs the quant firm Renaissance Technologies, pulled down $1.7 billion last year. Other quants pulling down large sums include David Siegel at Two Sigma, making $500 million, and David Shaw at DE Shaw made $750 million.
Meanwhile, you have the likes of Leon Cooperman, John Paulson, Dan Loeb and Bill Ackman all dropping out of the top 25 as their performance lagged in 2015. Still, some hedge fund managers are still pulling down big paydays despite their lackluster performance. Chief among them is Ray Dalio of Bridgewater Associates, who made $1.4 billion in 2015 while his flagship fund All Weather lost money. Then there’s Dan Och of Och-Ziff and Michael Platt of Blue Crest making the top 25 list despite their fund underperforming.
As with most things, Ken Griffin of Citadel Investment is the outlier. He tied Jim Simons as the highest paid fund manager of 2015, pulling in $1.7 billion. However, he continues to put up solid numbers, with his flagship fund up 14 percent in 2015.