Hey big spender! Meet the financier who made $2.2BILLION last year - topping new list of the world's richest hedge fund managers
Huge gambles paid off in spades for
these hedge fund managers, who have made a combined $14.14billion atop a
list of the richest in their field.
Leading the way is David Tepper of New Jersey-based Appaloosa Management, who collected a staggering $2.2billion haul last year.
The top 10 earners brought in just under $10billion in 2012.
The list was compiled by Institutional Investor's Alpha, an online magazine serving the hedge fund industry.
The total amount made by the 25 people on the list may seen high, but the $14.14billion total is less than last year, when the top hedge fund managers made $14.14billion.
In 2010, the total was $22billion.
Michael Peltz, the editor of the magazine group at Institutional Investor, said in a statement: 'The very best hedge fund managers proved in 2012 that they could deliver strong returns in challenging markets.'
The Motley Fool reported earlier this month that Mr Tepper made a gamble in the fourth quarter of 2012 that paid off considerably - betting on Apple.
He worked for eight years at Goldman Sachs as a trader but left to start up his own hedge fund, Appaloosa Management, in 1992 after repeatedly being passed over for partnership at Goldman.
Mr Tepper owns property in the
Hamptons but calls Livingston, New Jersey, his home. Gov Chris Christie,
Chelsea Handler and Seinfeld star Jason Alexander also live there.
He and his wife Marlene have three children.
After Hurricane Sandy struck last year, he donated $200,000 worth of Target gift cards to residents impacted by the storm.
The David A. Tepper School of Business at his alma mater Carnegie Mellon University was established after he made a $55million donation.
He's also a minority owner of the Pittsburgh Steelers.
Mr Tepper made headlines back in 2011
when he tore down his sprawling $43.5million oceanside home in Long
Island's plush Hamptons - because he didn't have enough ocean views.
He was allegedly irked that he couldn't see the ocean from every room of the sprawling 6,165 square foot estate, so he decided to build another one from the ground up, according to Curbed Hamptons.
It is thought he made the money by
correctly predicting that the U.S. government would not allow major
banks to fold that year, compounding his profits as the banks' share
prices then recovered.
Not far behind Mr Tepper on the list was Raymond Dalio of Bridgewater Associates, and Steven Cohen of SAC Capital Advisors, each earning $1.7billion and $1.4billion, respectively.
Mr Dalio, who topped the list last year, graduated from Harvard University and Long Island University.
He is known for his harsh business practices, which, according to Forbes, include videotaping all meetings and requiring brutal honesty from all staffers.
Like Mr Tepper, Mr Cohen has spent some of his fortune with a sports team, and is a minority owner of the New York Mets.
He graduated from the prestigious Wharton Business School at the University of Pennsylvania. In 2010, he and his wife pledged $50million to the North Shore-Long Island Jewish Health System.
James Simons, 74, who generally stays out of the public eye is known for his entrepreneurial efforts.
The former math professor and his second wife, Marilyn Hawrys Simons, have donated more than $200million to Stony Brook University. He is involved in several other charitable foundations.
Leading the way is David Tepper of New Jersey-based Appaloosa Management, who collected a staggering $2.2billion haul last year.
The top 10 earners brought in just under $10billion in 2012.
Moneymaker: David Tepper of New Jersey-based Appaloosa Management, collected a staggering $2.2billion haul last year
The total amount made by the 25 people on the list may seen high, but the $14.14billion total is less than last year, when the top hedge fund managers made $14.14billion.
In 2010, the total was $22billion.
Michael Peltz, the editor of the magazine group at Institutional Investor, said in a statement: 'The very best hedge fund managers proved in 2012 that they could deliver strong returns in challenging markets.'
The Motley Fool reported earlier this month that Mr Tepper made a gamble in the fourth quarter of 2012 that paid off considerably - betting on Apple.
He worked for eight years at Goldman Sachs as a trader but left to start up his own hedge fund, Appaloosa Management, in 1992 after repeatedly being passed over for partnership at Goldman.
Wedded bliss: Tepper and his wife Marlene, right, have three children and live in Livingston, New Jersey
He and his wife Marlene have three children.
After Hurricane Sandy struck last year, he donated $200,000 worth of Target gift cards to residents impacted by the storm.
The David A. Tepper School of Business at his alma mater Carnegie Mellon University was established after he made a $55million donation.
He's also a minority owner of the Pittsburgh Steelers.
Taken out: Mr Tepper famously tore down his Hamptons mansion because he couldn't see the ocean from every room
Gone: Mr Tepper tore down his 6,165-square-foot, $43.5 million Hamptons home to make room for a bigger one with better views
Other top earners: Mr Tepper was joined in the
top three by Raymond Dalio of Bridgewater Associates, left, and Steven
Cohen of SAC Capital Advisors, right
He was allegedly irked that he couldn't see the ocean from every room of the sprawling 6,165 square foot estate, so he decided to build another one from the ground up, according to Curbed Hamptons.
Benefactor: James Simons, 74, who generally stays out of the public eye is known for his entrepreneurial efforts
Not far behind Mr Tepper on the list was Raymond Dalio of Bridgewater Associates, and Steven Cohen of SAC Capital Advisors, each earning $1.7billion and $1.4billion, respectively.
Mr Dalio, who topped the list last year, graduated from Harvard University and Long Island University.
He is known for his harsh business practices, which, according to Forbes, include videotaping all meetings and requiring brutal honesty from all staffers.
Like Mr Tepper, Mr Cohen has spent some of his fortune with a sports team, and is a minority owner of the New York Mets.
He graduated from the prestigious Wharton Business School at the University of Pennsylvania. In 2010, he and his wife pledged $50million to the North Shore-Long Island Jewish Health System.
James Simons, 74, who generally stays out of the public eye is known for his entrepreneurial efforts.
The former math professor and his second wife, Marilyn Hawrys Simons, have donated more than $200million to Stony Brook University. He is involved in several other charitable foundations.
THE RICH LIST: AMERICA'S TOP EARNING HEDGE FUND MANAGERS
NAME COMPANY EARNINGS
David Tepper Appaloosa Management $2.2billion
Raymond Dalio Bridgewater Associates $1.7billion
Steven Cohen SAC Capital Advisors $1.4billion
James Simons Renaissance Technologies $1.1billion
Kenneth Griffin Citadel $900million
Edward Lampert ESL Investments $750million
Stephen Mandel Jr. Lone Pine Capital $580million
Leon Cooperman Omega Advisors $380million
David Shaw D.E. Shaw Group $530million
Daniel Loeb Third Point $380million
David Tepper Appaloosa Management $2.2billion
Raymond Dalio Bridgewater Associates $1.7billion
Steven Cohen SAC Capital Advisors $1.4billion
James Simons Renaissance Technologies $1.1billion
Kenneth Griffin Citadel $900million
Edward Lampert ESL Investments $750million
Stephen Mandel Jr. Lone Pine Capital $580million
Leon Cooperman Omega Advisors $380million
David Shaw D.E. Shaw Group $530million
Daniel Loeb Third Point $380million