Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Top hedge fund managers still raking in the money

Despite market turmoil, top 25 earners took home $11.6 billion in 2008, according to ranking by Alpha magazine.

EMAIL  |   PRINT  |   SHARE  |   RSS
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By CNNMoney.com staff

LONDON (CNNMoney.com) -- Despite turbulence in the financial markets and the global economic downturn, the world's 25 top-earning hedge fund managers raked in a staggering $11.6 billion last year, according to a ranking released Wednesday.

On average, the managers took home $464 million each, Alpha magazine's annual list of top hedge fund earners showed. By comparison, the average take home pay in 2007 was a whopping $892 million.

Leading the pack was James Simons of New York's Renaissance Technologies, who took home $2.5 billion in 2008. He was followed by John Paulson, who held the No. 1 spot in 2007. Paulson earned $2 billion last year.

In the No. 3 spot was John Arnold, founder of Centaurus Energy, who earned the bulk of his $1.5 billion through natural gas trading, according to Alpha. George Soros, who raked in $1.1 billion, and Raymond Dalio of Bridgewater Associates came in fourth and fifth, respectively.

Hedge funds are private investment funds that are targeted mainly at wealthy individuals and large institutions. They use a variety of investment methods, ranging from bets on currencies and mergers to traditional stockpicking.

The industry has come under scrutiny in recent years, however, for its secretive nature and for a particular strategy some funds employ known as short selling, or betting against a company.

Alpha compiles its list by measuring the share of the performance and management fees the managers receive and the gains they reap from their own investment in their funds. To top of page

They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
Black Friday 2015 in pictures Shoppers around the country braved the crowds to get their hands on the best Black Friday deals. More
Driving the ultimate in '50s Mercedes-Benz style The SC was the car that re-introduced Mercedes-Benz as a global luxury car icon. More
Driving the world's first car Driving a replica of the 1886 Benz Patent Motorwagen, the first internal combustion automobile. More
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play