Appaloosa Management’s David Tepper has been ranked as the best-paid hedge fund manager for the second year in a row.
According to Institutional Investors' Alpha's 13th annual list of the hedge fund industry’s highest earners, Tepper earned $3.5 billion in 2013 mostly due to profitable bets on airlines stocks. This is the second consecutive year Tepper has topped the Rich List and the third times in five years.
SAC Capital Advisors’ Steve Cohen and Paulson & Co.’s John Paulson ranked second and third, respectively. Cohen made $2.4 billion last year, while Paulson took home $2.3 billion by mostly avoiding the hottest stocks. New York-based Paulson & Co. returned triple digits from its investments in T-Mobile and Leap Wireless International.
The 25 top earners of 2013 took in a total of $21.15 billion—50% more than the 25 best-paid managers earned in each of the previous two years. Other notables on this year’s list include Renaissance Technologies’ James Simons ($2.2 billion), Citadel’s Kenneth Griffin ($950 million) and Omega Advisors’ Leon Cooperman ($825 million).
Managers would need to manage outside capital in order to qualify for the list.