The 20 best-performing hedge funds in the world achieved $67 billion in returns for investors in 2023, nearly three times what these funds achieved in 2022, led by TCI Fund Management, according to research conducted by LCH Investments, up from the previous record of $65 billion in 2021.
The 20 funds recorded an average return of 10.5 percent last year, and Bridgewater Associates, founded by billionaire Ray Dalio, and the Caxton Fund were the only ones among the 20 funds to suffer losses.
The world’s most successful hedge funds made their biggest profits ever last year, as aggressive bets in stock markets paid off when prices rose in 2023.
This performance strengthened its dominance over the rest of the industry, as the 20 best-performing hedge funds since their inception manage 19 percent of assets, but they generated about a third of annual profits last year, in dollar terms.
According to LCH Investments research, the 20 largest managers have achieved profits worth $755.4 billion since their founding – more than $655.5 billion from the assets they currently manage, while the numbers indicate that senior managers give priority to the careful distribution of investors’ capital, rather than making the fund as large as possible.