>> They're the richest guys in the room, despite not always being the smartest ones. A new report out Tuesday shows 25 top hedge fund managers took home a combined $13 billion last year, according to an annual ranking by institutional investors Alpha. Those hefty paychecks coming despite industry wide losses and several high profile stock picking blunders.
Reuters correspondent Svea Herbst-Bayliss.>> Last year David Einhorn at an investment conference said that Sun Edison, the solar company would be a wonderful bet. This year they went bankrupt. Last year Blackman said that Valiant the drug company would be an absolutely fabulous bet, his best idea indeed, down 85% since he made that call.
So those are the numbers, and they seem to be suggesting that these guys don't have all the information or all the insight and some of their best ideas are not so great after all. The industry's tarnished reputation aside, Ken Griffin of Citadel earned $1.7 billion in 2015, to tie in first place with James Simons of Renaissance Technologies.
Ray Dalio of Bridgewater Associates and David Tepper of Appaloosa Management following close behind, each bringing home 1.4 billion. To put that in perspective, you know what Jamie Diamond, who runs the country's biggest bank, JP Morgan Chase, earned last year? $27 million. Hedge fund managers make so much more than others in the finance industry, because they charge a 2% annual management fee on top of a 20% take of any investment gains.
Given that outsized pay and mediocre results, it's no wonder some investors are asking if Wall Street's riches are still worth it.