The year 2023 turned out to be a fruitful one for hedge funds billionaires. The hedge fund industry as a whole generated gains worth $218 billion after fees last year, and roughly a third was produced by the world’s 20 most profitable firms, which manage just shy of a fifth of the industry’s assets, according to a report by LCH Investments, a fund of hedge funds, released yesterday (Jan. 22).
A hedge fund is a special type of asset management firm that pools funds from clients and invest them using a variety of risk-minimizing strategies with the goal of seeking maximum returns. As the money manger, the firm usually takes a flat management fee plus a cut of clients’ earnings.
Every year, LCH........