Key Takeaways
- • Six hedge fund managers earned at least $1 billion in 2013, with George Soros leading at $4 billion, followed by David Tepper ($3.5 billion), Steve Cohen ($2.3 billion), John Paulson ($1.9 billion), Carl Icahn ($1.7 billion), and James Simons ($1.1 billion), according to Forbes estimates.
- • The top 10 earners included Ray Dalio and Ken Griffin, each at $900 million, along with Larry Robbins and Leon Cooperman, demonstrating sustained wealth concentration among elite alternative investment managers.
- • Multiple billionaire managers have committed to major philanthropic initiatives, including Leon Cooperman's Giving Pledge pledge and substantial charitable donations from Soros and Griffin, signaling wealth redistribution strategies among top earners.
- • The earnings report emerged amid congressional debate over taxation of hedge fund profits, positioning the wealth concentration narrative within broader policy discussions on income inequality and fund manager compensation.
Summary
An elite cohort of six hedge fund managers and investors generated over $1 billion in earnings during 2013, according to Forbes estimates of the 25 highest-earning hedge fund professionals that year. George Soros of family office Soros Fund Management led the group with $4 billion in earnings, nearly double the second-place finisher. David Tepper of Appaloosa Management earned $3.5 billion, while Steve Cohen of SAC Capital Advisors (in transition to family office status) generated $2.3 billion. John Paulson of Paulson & Co. earned $1.9 billion, Carl Icahn of activist investment firm Icahn Enterprises earned $1.7 billion, and James Simons, retired founder of quantitative trading firm Renaissance Technologies, earned $1.1 billion.
The top 10 earners extended beyond this six-person billion-dollar club. Ray Dalio of macroeconomic-focused Bridgewater Associates and Ken Griffin of multistrategy Citadel each earned $900 million. Larry Robbins of stock and credit-focused Glenview Capital Management and Leon Cooperman of stock picker Omega Advisors rounded out the top 10, though their specific 2013 earnings were not disclosed in the report.
Reflecting evolving attitudes toward wealth among top earners, several managers have committed to philanthropic endeavors. Leon Cooperman stated via email that "whatever I make will be returned to society to help create a better world for all and a world of equal opportunity," citing his participation in the Giving Pledge. Ray Dalio has similarly signed the Giving Pledge commitment. George Soros and Ken Griffin have both made substantial charitable donations, though specific amounts were not detailed in the report.
The earnings disclosure coincided with renewed congressional scrutiny of hedge fund taxation, with legislators revisiting proposals for higher taxes on fund profits. Most major firms—including Renaissance Technologies, SAC Capital, Paulson & Co., Citadel, Bridgewater Associates, and Glenview Capital—declined comment on the Forbes rankings.
The top 10 earners extended beyond this six-person billion-dollar club. Ray Dalio of macroeconomic-focused Bridgewater Associates and Ken Griffin of multistrategy Citadel each earned $900 million. Larry Robbins of stock and credit-focused Glenview Capital Management and Leon Cooperman of stock picker Omega Advisors rounded out the top 10, though their specific 2013 earnings were not disclosed in the report.
Reflecting evolving attitudes toward wealth among top earners, several managers have committed to philanthropic endeavors. Leon Cooperman stated via email that "whatever I make will be returned to society to help create a better world for all and a world of equal opportunity," citing his participation in the Giving Pledge. Ray Dalio has similarly signed the Giving Pledge commitment. George Soros and Ken Griffin have both made substantial charitable donations, though specific amounts were not detailed in the report.
The earnings disclosure coincided with renewed congressional scrutiny of hedge fund taxation, with legislators revisiting proposals for higher taxes on fund profits. Most major firms—including Renaissance Technologies, SAC Capital, Paulson & Co., Citadel, Bridgewater Associates, and Glenview Capital—declined comment on the Forbes rankings.
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