(Bloomberg) — Stated Haidar’s conviction that inflation was about to blow up throughout the globe may be summarized by a single quantity: $63 billion. That’s how a lot his Haidar Capital Administration reported in property to begin 2022.
The catch? The hedge fund truly 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 wager huge 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 shoppers in January 2022 that markets must worth in additional price hikes, resulting in “choppiness in danger property.”
Few reaped a much bigger windfall.
Haidar personally raked in $859 million in 2022, inserting him sixth on Bloomberg’s annual rating of top-earning hedge fund managers. He’s the most recent and least-known title on a listing in any other case dominated by business heavyweights. Citadel’s Ken Griffin, Point72’s Steve Cohen and Millennium’s Izzy Englander, value 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 previous guard after being outpaced at instances in recent times by extra tech-focused traders like Chase Coleman and his fellow Tiger Cubs. The largest winners embody 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 companies felt that glory and ache personally. Griffin, 54, made $4.1 billion final yr alone. Coleman, 47, misplaced $1.7 billion, in line with 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 residence 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 a 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 complete since 2019. Two years in the past, it was $23 billion, when Coleman took residence $3 billion to nab the highest spot.
The losses, in the meantime, had been huge.
Tiger International’s public funds shrank in 2022 as its bets on China, tech shares and personal startups backfired after years of blockbuster features. Scott Shleifer, the agency’s head of personal investments, misplaced $530 million. Bloomberg’s evaluation solely examined companies’ hedge and long-only funds, not devoted non-public 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 a lot of these companies have in frequent: huge 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 not handle cash for exterior traders. Meaning 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 acquired off to a rocky begin this yr. His fund sank 13% in January after being caught off-guard by an sudden drop in bond yields. He advised shoppers 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 shortly 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.