To The Moon

What is your household's dollar asset allocation ratio?

Aside from individual stock investments, do you also invest in insurance, U.S. debt, or hedge fund products?

If you had $1 million, would you prefer investing in Warren Buffett's approach, the ARKK Fund, or have other investment preferences?

The New York Stock Exchange building is seen from Wall Street in Lower Manhattan in New York

Below are the Top 20 overseas hedge funds making money in 2023: TCI ranks first, followed by Citadel

According to the hedge fund ranking data released by LCH Investments, the FOF agency of the Rothschild family, the hedge fund industry will bring a total of nearly US$218 billion in net income to investors in 2023, of which the top 20 companies contributed US$67 billion.

That is to say, the asset management scale of the top 20 companies is less than 1/5 of the industry, but they have created nearly 1/3 of the industry's income.

In detail, in 2023, the top 20 hedge funds not only achieved an average return of 10.5%, far exceeding the industry average of 6.4%. From a long-term perspective, in the past 3 years, the top 20 hedge funds contributed 83% of the industry's overall returns.

Rick Sopher, Chairman of LCH, commented:

"These leaders tend to have strong retracement control capabilities, are good at seizing market opportunities, and can pursue excess returns in the long term."

For example, three companies, Citadel, Millennium Management and D.E. Shaw, managed only about 4.6% of the industry's assets at the end of 2023, but they created a combined profit of $71.2 billion in the past three years, accounting for 38.3% of the total profits of all hedge funds.

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LCH Investments

LCH Investments

Take TCI Hedge Fund, for example, which rose 32.7% in 2023, far exceeding the $S&P 500(.SPX)$ Index's 24.2%.

Chris Hohn's TCI Fund Management made $12.9 billion for investors last year, LCH Investments says.

Founded in 2003 by billionaire investor Chris Hohn, the TCI Fund Management was up 32.7%  in 2023, recouping a significant chunk of the losses accrued in 2022.

Hohn founded the hedge fund with his ex-wife, Jamie Cooper Hohn, with the sole aim of transforming the lives of children and adolescents.

TCI Fund Management has been growing in strength since it bounced back from a 43% drawdown amid the global financial crisis in 2008. It has generated, on average, 18% in annualized gain since inception, more than double the return of the S&P 500 index over the same period. The gains have come on Hohn running mostly long only and a very concentrated global portfolio of stocks.

We hold the belief that companies exhibiting robust capital return management are more likely to garner investor interest.

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