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Meanwhile, hopes of a soft landing — i.e., avoiding a recession — are increasing. That could be welcome news for small-cap investors, and Druckenmiller now counts himself among them. In 1976, he married his high school sweetheart, but the couple divorced in 1980. In 1988, Druckeniller married Fiona Katharine Biggs, niece of investor Barton Biggs, and the couple have three daughters who they raised in New York.
He is known for his willingness to change his position when the market environment shifts (as he and Soros famously did in their bet against the British pound in 1992). He also differentiates himself by focusing not only on when to buy but also on when to sell, sometimes changing his mind and exiting positions quickly to preserve capital. Again the youngest hedge fund manager on The Forbes 400 at 46-years-old, Chase Coleman is also this year’s biggest gainer, with his net worth fxpcm rising $3.4 billion.
His approach serves as a timeless guide for investors around the globe, cementing his reputation as one of the most respected and famous investors worldwide. Philippe Laffont, founder and chief investment officer of Coatue Management. Working under George Soros, Druckenmiller helped guide the strategy that “broke the bank of England,” making them more than a billion dollars in 1992 by shorting the British pound, leading to its crash.
Stan Druckenmiller made a lot of money investing in Nvidia (NVDA -0.15%), but he’s finally taken some of his profits off the table. Many wonder about Druckenmiller’s net worth, a testament to his success. As of 2023, Druckenmiller’s net worth was estimated to be roughly $6 billion, a fortune amassed through decades of superior returns. South Korean e-commerce leader Coupang (CPNG 1.54%) may not be an AI stock in the traditional sense, but the company is doing things with artificial intelligence that earn it a place in the category. It might not be a surprise to see Nvidia (NVDA -0.15%) at the top of this list.
Here is the comprehensive list of all the hedge fund managers on the 2021 Forbes 400 list.
The tech giant has been a close partner of ChatGPT parent OpenAI, having invested billions into the AI start-up, and that’s given it an edge in the new technology. Adam Levy has positions in American Century ETF Trust-Avantis U.s. Small Cap Value ETF. First and foremost, smaller companies are more sensitive to interest rates than larger enterprises. Companies in the Russell 2000 hold a total of $832 billion of debt, 75% of which needs to be refinanced by 2029, according to a report from Bloomberg. By comparison, just 50% of debt obligations from companies in the S&P 500 are due by then. The Russell 2000 has yet to surpass the all-time high it reached back in 2021.
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Meanwhile, the S&P 500 zoomed past its previous high in January and has continued climbing higher this year.
- As of the end of the first quarter, Druckenmiller’s biggest position was call options on the iShares Russell 2000 ETF (IWM 2.14%).
- After starting Duquesne Capital Management in 1981, Druckenmiller’s hedge fund never had a down year, a period that included the Black Monday crash, the dot-com bust, and the great financial crisis.
- To determine the net worth of hedge fund managers, Forbes took into account fund returns as well as the fee and ownership structure of different money management firms to estimate earnings and cash growth.
- We also included the value of other assets owned by hedge fund managers, such as real estate, planes and art collections.
- Together, they executed a bet against the British pound in 1992 – a move that led to a significant profit and the dramatic narrative of “breaking the Bank of England”.
Druckenmiller’s journey from a management trainee to a respected financial titan is a narrative of exceptional intellect, disciplined risk management, and unparalleled market intuition. His strategic moves, most notably the 1992 bet against the British pound and the predictive maneuvering before the 2008 financial crisis, showcase his profound understanding of macroeconomic dynamics. He then founded the hedge fund Duquesne Capital Management in 1981 and ran it successfully for seven years. However, it was his role as the lead portfolio manager for Soros’s Quantum Fund from 1988 to 2000 that propelled him into the financial spotlight. The famous bet against the British pound in 1992 was a key moment during this period.
Stanley Druckenmiller
Steve Cohen founded and runs hedge fund Point72 Asset Management, which has $20 billion of assets under management. The firm started managing outside capital in 2018, following a two-year supervisory ban stemming from insider-trading charges leveled at Cohen’s previous firm, SAC Capital. In October 2020, Cohen completed his purchase of the New York Mets baseball team for $2.4 billion. Ken Griffin runs Citadel, a Chicago-based hedge fund firm he founded in 1990 that manages roughly $39 billion in assets. After returning 24% in 2020, the firm’s flagship Wellington fund was reportedly up nearly 10% for the year through August. Griffin is also the founder of Citadel Securities, one of the biggest market-making firms on Wall Street.
He moved to Pittsburgh full-time in 1986, when he was named head of the Dreyfus Fund. As part of his agreement with Dreyfus, he also maintained his management of Duquesne. Israel “Izzy” Englander, chairman and chief executive officer of Millennium Management.
He has had another stellar year with Tiger Global Management, boasting an annualized net return of 21% since he started the firm he started 20 years ago. Coleman has been building up Tiger’s Global venture funds in recent years, which now account for $40 billion of the firm’s total $65 billion in assets. The wealthiest new hedge fund billionaire joining the ranks of The Forbes 400 is Philippe Laffont, with a net worth of $6.5 billion.
Notable Trades and Investments
The price-to-sales ratio of the Russell 2000 is less than half that of the S&P 500. The forward price-to-earnings ratio of the small-cap S&P 600 index (which only tracks profitable businesses) is 30% lower than the S&P 500. The Federal Reserve expects to start cutting interest rates later this year.
Considering that Nvidia has soared since the start of the year, those options could have paid off handsomely for the billionaire investor. Today, he runs the Duquesne Family Office, which has about $3.4 billion in assets as of its fourth-quarter update. Like a number of other CEOs and investors, the billionaire sees it as a major innovation, saying last year, “AI could be as transformative as the internet.”
He no longer manages money for clients but still invests through his family office fund. Through his Open Society Foundations, Soros has given away $16.8 billion to philanthropy in his lifetime. Stanley Druckenmiller is an American hedge fund manager who has a net worth of $7 billion. Stanley Druckenmiller earned his fortune as the former Chairman and President of Duquesne Capital. He closed the fund in August 2010 because he felt he was unable to deliver high return to his clients. At the time of closing, Duquesne Capital had just over $12 billion in assets.
Laffont is one of the so-called “Tiger Cubs,” having worked at Julian Robertson’s Tiger Management before starting his own hedge fund, Coatue Management, which has $25 billion of assets under management. fusion markets review Another new addition is Joseph Edelman, CEO of New York-based firm Perceptive Advisors, which returned 29% in 2020 and now manages $10 billion in assets. Arguably the greatest hedge fund manager of his generation, David Tepper runs Appaloosa Management, which boasted annualized returns of 25% in its first 25 years. Tepper has been steadily winding down and returning money to clients in recent years, however, with Appaloosa’s assets under management down to $13 billion, down from a peak of $20 billion.
Druckenmiller owned 22.9 million shares of Coupang as of the end of the year, adding 2 million shares to his holdings in Q4 to bring the total stake to $371 million, or 11% of his portfolio. It’s not fully clear why Druckenmiller is betting on Coupang, but the stock offers appealing growth at a good value right now. He ended the first quarter with just $159 million worth of Nvidia stock, cutting his position by roughly 84%. Druckenmiller’s Nvidia stake helped increase his portfolio value by more than $1 billion in the first quarter alone, up from about $3.4 billion at the end of 2023. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer.