"Our performance in 2011 was clearly unacceptable," Paulson, 56, wrote in a letter sent this month to clients. "We took too much equity exposure and lacked sufficient hedges to mitigate the market volatility. However, we believe 2011 will be an aberration in our long-term performance."
Caxton Associates LP and Thomas Steyer and Andrew Spokes' San Francisco-based Farallon Capital Management LLC didn't make or lose any client money last year in their main funds, LCH's data show. Soros, 81, decided last year to return all money to outside investors. Bruce Kovner, 67, Caxton's CEO and founder, retired in 2011 from the New York-based firm, which is now managed by former Goldman Sachs Group Inc. trader Andrew Law.
New to LCH's list of the most profitable hedge funds through 2011 is Steve Cohen's SAC Capital Advisors, which has made $12.2 billion for clients since inception in 1994, according to LCH. SAC, based in Stamford, Connecticut, replaced Edward Lampert's ESL Investments Inc. of Greenwich, Connecticut.
Below is a list of how much money clients have made investing in top hedge funds since inception. The data are provided by LCH Investments NV.
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Hedge Fund Net Gains Year Founded
Bridgewater Pure Alpha $35.8 Billion 1975
Quantum Endowment Fund $31.2 Billion 1973
Paulson & Co. $22.6 Billion 1994
Baupost $16 Billion 1983
Brevan Howard $15.7 Billion 2003
Appaloosa $13.7 Billion 1993
Caxton Global $13.1 Billion 1983
Moore Capital $12.7 Billion 1990
Farallon $12.2 Billion 1987
SAC $12.2 Billion 1992
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