(Bloomberg) — Mentioned Haidar’s conviction that inflation was about to blow up throughout the globe could be summarized by a single quantity: $63 billion. That’s how a lot his Haidar Capital Administration reported in belongings to begin 2022.
The catch? The hedge fund really oversaw simply $1.2 billion.
That copious leverage led to a tumultuous yr — one month the fund was up 54%, one other it was down 20% — however finally paid off, producing a 193% return for traders. Haidar guess massive that rates of interest would climb at a speedy clip, accurately positioning to revenue from the surge in inflation that led to essentially the most aggressive central financial institution tightening marketing campaign in a technology.
Some, like Haidar, can say they noticed all of this coming. He wrote to purchasers in January 2022 that markets must worth in additional charge hikes, resulting in “choppiness in danger belongings.”
Few reaped an even bigger windfall.
Haidar personally raked in $859 million in 2022, putting him sixth on Bloomberg’s annual rating of top-earning hedge fund managers. He’s the latest and least-known title on an inventory in any other case dominated by trade heavyweights. Citadel’s Ken Griffin, Point72’s Steve Cohen and Millennium’s Izzy Englander, price about $55 billion mixed, nabbed the primary three spots.
A spokesman for Haidar declined to remark.
Learn extra: Haidar’s Hedge Fund Dominates Macro Resurgence With 274% Achieve
Haidar, a dealer who began his hedge fund greater than 25 years in the past, displays a resurgence within the hedge fund world’s outdated guard after being outpaced at occasions in recent times by extra tech-focused traders like Chase Coleman and his fellow Tiger Cubs. The most important winners embrace macro specialists like Haidar, in addition to quants and multi-strategy funds. Citadel, for one, rose 38% on the yr. The losers, together with Coleman’s Tiger International Administration, Lone Pine Capital and Coatue Administration, posted a few of their worst annual returns ever.
The founders of these corporations felt that glory and ache personally. Griffin, 54, made $4.1 billion final yr alone. Coleman, 47, misplaced $1.7 billion, based on Bloomberg’s evaluation.
See final yr’s rating right here: Unknown Hedge Fund Supervisor Made $2 Billion, Beating Titans
Griffin derived simply over half of his earnings from his funding in Miami-based Citadel’s funds, with the remaining coming from his share of efficiency charges. It’s essentially the most anybody has taken dwelling since Bloomberg began the rating in 2019, and greater than double the $1.9 billion earned by Cohen, the proprietor of Point72 Asset Administration and the New York Mets, who ranked second.
For the way Bloomberg calculated the lists: click on right here.
Regardless of Griffin’s haul, the $13.8 billion collected by the 15 top-earning managers was the bottom annual whole since 2019. Two years in the past, it was $23 billion, when Coleman took dwelling $3 billion to nab the highest spot.
The losses, in the meantime, had been monumental.
Tiger International’s public funds shrank in 2022 as its bets on China, tech shares and personal startups backfired after years of blockbuster beneficial properties. Scott Shleifer, the agency’s head of personal investments, misplaced $530 million. Bloomberg’s evaluation solely examined corporations’ hedge and long-only funds, not devoted personal fairness and enterprise capital portfolios.
Different stalwarts of Bloomberg’s earlier lists of prime hedge fund earners additionally confronted reversals of fortune. D1 Capital’s Dan Sundheim, TCI’s Chris Hohn, Lone Pine Capital’s Stephen Mandel and Viking International’s Andreas Halvorsen incurred the most important private losses final yr. What lots of these corporations have in frequent: massive bets on tech shares, generally together with VC investments. Most of the managers began their careers at Julian Robertson’s Tiger Administration, incomes them the Tiger Cub moniker.
Bloomberg’s listing excludes those that now not handle cash for exterior traders. Which means Michael Platt isn’t ranked, regardless of including $3 billion to his fortune as BlueCrest Capital booked a 153% return.
Learn extra: Michael Platt’s Extremely Leveraged Fortune Balloons to $11 Billion
As for Haidar, he obtained off to a rocky begin this yr. His fund sank 13% in January after being caught off-guard by an surprising drop in bond yields. He instructed purchasers in an interview this month that he stays satisfied inflation will stay elevated, forcing central banks to maintain ratcheting up rates of interest.
“If inflation does come down as rapidly as central banks predict,’’ he stated, “it’ll be as a result of they get actually fortunate.”
–With help from Amanda Albright, Nishant Kumar and Katherine Burton.
To contact the authors of this story:
Tom Maloney in New York at [email protected]
Hema Parmar in New York at [email protected]
© 2023 Bloomberg L.P.