Really the best-performing hedge fund each year — as measured by percentage returns — always should be one that runs at 50x leverage:
Said Haidar’s conviction that inflation was about to explode across the globe can be summarized by a single number: $63 billion. That’s how much his Haidar Capital Management reported in assets to start 2022.
The catch? The hedge fund actually oversaw just $1.2 billion.
That copious leverage led to a tumultuous year — one month the fund was up 54%, another it was down 20% — but ultimately paid off, producing a 193% return for investors. Haidar bet big that interest rates would climb at a rapid clip, correctly positioning to profit from the surge in inflation that led to the most aggressive central bank tightening campaign in a generation. …
Haidar personally raked in $859 million in 2022, placing him sixth on Bloomberg’s annual ranking of top-earning hedge fund managers. He’s the newest and least-known name on a list otherwise dominated by industry heavyweights. Citadel’s Ken Griffin, Point72’s Steve Cohen and Millennium’s Izzy Englander, worth about $55 billion combined, nabbed the first three spots.
Obviously the worst-performing hedge fund each year should be a different one that runs at 50x leverage. Anyway Bloomberg’s list of top-earning hedge fund managers is mostly a list of huge multistrategy funds, suggesting that the hedge fund business is pretty institutionalized these days. But you still sometimes get a guy with his name on the door, a gut instinct and a ton of leverage breaking into the top ranks.