Last month, Vermont Senator and self-proclaimed Democratic socialist Bernie Sanders fired again at his favorite target: the rich.
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“The top 15 hedge fund managers on Wall Street make more money in a single year than every kindergarten teacher in America combined — over 120,000 teachers,” Sanders said in a video posted to Twitter and YouTube. He claimed that just over 40% of teachers made less than $60,000 a year. According to Salary.com, the average hedge fund manager in the United States makes $136,723 per year.
Of course, teachers and hedge fund managers make their money in different ways, which makes this comparison a real comparison. Unlike teachers, hedge fund managers can do this lose Money in a given year if their fund has clawback clauses and no management fees. Hedge fund compensation is performance-linked, which means that the highest paid and wealthiest hedge fund managers are also the best performers.
With that in mind, here are three of the world’s richest money managers and what they’re currently betting on.
Net Worth: $19.1 billion
As of March, Ray Dalio has a personal fortune of $19.1 billion making him the 82nd richest person in the world. His firm, Bridgewater Associates, currently has over $150 billion in assets under management, making it one of the largest hedge funds in the world.
According to the company’s recent 13F filing, Dalio’s team added banks such as JP Morgan Chase (JPM) and Bank of America (BAC) to the portfolio. Meanwhile, Procter & Gamble (PG) was one of the largest acquisitions, accounting for 4.13% of the company’s total portfolio.
Net worth: $28.1 billion
Jim Simons is the second richest on this list and is worth nearly $10 billion more than Ray Dalio. His New York-based hedge fund, Renaissance Technologies, has $50 billion in assets under management.
Simons recently added Apple (AAPL) to the portfolio, while the largest holding in the portfolio is Novo Nordisk (NVO). However, the fund’s investment strategy is notoriously complicated and is based on statistical patterns rather than random events in the market. Because of this, the stock portfolio may not explain Simon’s overall exposure to the market.
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Net worth: $35 billion
Ken Griffin is the richest hedge fund manager of the three, and it’s not particularly close. This is due to his whopping 80% stake in Citadel Securities, the Miami-based hedge fund with over $57 billion in assets under management.
After reaping $16 billion from its investments last year, Citadel became the world’s top-performing hedge fund in 2022. The company recently bought Netflix stock, according to its recent 13F filing. The largest and smallest positions in the portfolio are put and call options on the S&P 500 (SPY), suggesting that the fund’s investment strategy is an intricate mix of derivatives.
An important caveat
Hedge fund portfolios are complicated. What we know is based on regulatory submissions such as Form ADV and the 13F. These forms are filed on a quarterly basis, which means that by the time retail investors like us find out, positions may have changed significantly. They also do not include details on derivatives such as options, futures or leverage. This means that a hedge fund’s true position in a company is difficult to discern.
The strategic moves of successful hedge funds may provide general indications of the market’s economic prospects, but should not be an integral part of a retail investor’s personal investment strategy.
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This article is informational only and should not be construed as advice. It is provided without any guarantee.
Source : finance.yahoo.com