By Carolina Mandl and Nell Mackenzie

NEW YORK/LONDON (Reuters) – The world’s 20 best-performing hedge funds generated $67 billion for buyers in 2023, roughly triple what they returned in 2022, with activist TCI Fund Administration main the pack, in keeping with knowledge revealed by LCH Investments on Monday.

Bridgewater Associates, based by billionaire Ray Dalio, and Caxton, had been the one two corporations among the many 20 whose funds posted a loss.

The rating doesn’t embody all of Bridgewater’s funds, corresponding to All Climate, which tends to observe the broader market strikes and was up 10.6% final yr, a supply accustomed to the matter stated.

On common, the highest 20 managers had been up 10.5% final yr, whereas the business general returned 6.4%, LCH stated.

Billionaire Christopher Hohn’s TCI led the annual rating by 2023 returns, which had been $12.9 billion after charges, whereas Citadel, Millennium Administration and D. E. Shaw, all multi-strategy corporations, had been the highest three hedge funds by lifetime beneficial properties.

LCH’s chairman, Rick Sopher, stated in an electronic mail assertion that, regardless of accounting for under 4.6% of the business’s property below administration, the trio generated 38.3% of your complete business’s returns over the previous three years.

Multi-strategy hedge funds usually use a whole lot of leverage to assist returns. The largest corporations are additionally in a position to pay prime greenback for the most effective expertise, as they’ve a charge construction that pays for many of their operational prices.

Final yr’s robust business efficiency adopted a weak 2022, when no less than eight of the highest 20 hedge funds misplaced cash on market turbulence sparked by the warfare in Ukraine and Federal Reserve rate of interest hikes geared toward taming inflation.

LCH Investments, a fund-of-funds agency that’s a part of the Edmond de Rothschild Group, tracks hedge funds’ annual returns to calculate their cumulative lifetime beneficial properties – a key measure of efficiency for some institutional buyers.

Its sources embody conferences with agency executives, audited and administration reviews, and different sources, it says.

Billionaire Ken Griffin’s Citadel remained in pole place in 2023, with $74 billion in beneficial properties since its creation in 1990. Final yr, Citadel’s flagship fund rose 15.3% and the agency determined to provide again about $7 billion to buyers.

William Ackman’s Pershing Sq., an activist fund, returned to the rankings for the primary time since 2015. It stood in twentieth place for 2023, having generated $18.8 billion for buyers since 2004.

Final yr, Pershing Sq. returned 26.7%, beating the broader inventory market beneficial properties and bouncing again from a loss within the earlier yr.

2022 2023 Agency Web beneficial properties 2023 Web

Rating Rating since beneficial properties ($

inception bln)

($ bln)

1 1 Citadel 74 8.1

3 2 D. E. Shaw 56.1 4.2

4 2 Millennium 56.1 5.7

2 4 Bridgewate 55.8 (2.6)

r

6 5 Elliott 47.6 5.5

5 6 Soros 43.9 n/a

14 7 TCI 41.3 12.9

7 8 Viking 40.9 6

8 9 Baupost 37 3.8

9 10 Farallon 35.7 2.6

11 11 Lone Pine 35.6 4.2

10 12 Appaloosa 35 2.7

12 13 Level 72 33 3

13 14 Och 32.2 2.3

Ziff/Sculp

tor

15 15 Brevan 28.5 0.4

Howard

16 16 Egerton 23.9 2.3

18 17 Davidson 21 1.8

Kempner

19 18 King 19.5 0.9

Road

17 18 Caxton 19.5 (0.3)

– 20 Pershing 18.8 3.5

Sq.

Complete 755.4 67