Said Haidar, a lesser-known hedge fund manager, reportedly joined Ken Griffin, CEO of Citadel, and Steve Cohen, owner of the New York Mets, on the list of Wall Street’s top earners last year after his firm obtained a 193% return.
Bloomberg reported on Friday that the CEO of Haidar Capital Management made $859 million from gains on his personal assets and his firm’s performance. The enormous gain placed him sixth on the publication’s list of 2022’s highest-earning hedge fund managers.
Haidar, a former Lehman Brothers traders who launched his hedge fund more than 25 years ago, earned the windfall by correctly betting that decades-high inflation would force the Federal Reserve and other central banks to steadily hike interest rates.
Using leveraged rates trading, he capitalized on the policy tightening trend to collect $63 billion in assets, despite beginning the year in charge of only $1.2 billion.
“Over the past year, investors have erroneously anticipated an early end to central bank rate hikes, followed almost immediately by rate cuts,” Bloomberg quoted Haidar as writing in a letter to clients last September. Yet, as global inflation has shown to be more persistent than anticipated, central banks have become more aggressive in their opposition to this view.
In an effort to chill the economy and reduce prices, the Federal Reserve executed seven consecutive rate hikes in 2015, including several turbocharged increases. This year is anticipated to bring additional interest rate increases.
Griffin remained Wall Street’s highest-earning hedge fund manager, with estimated personal earnings of $4.1 billion last year. The Bloomberg Billionaires Index estimates that he has a personal net worth of $30,3 billion.
Cohen, the CEO of Point72, placed second with $1.9 billion. He is projected to be worth $12.9 billion.
Haidar Capital Management’s return of 193% exceeded Citadel’s growth of 38.1% and Point72’s growth of 11.7%.
Rounding out the top five were Millennium’s Izzy Englander, Renaissance Technology’s Jim Simons and D.E. David Shaw by Shaw.
According to Bloomberg, the top 15 hedge fund earners pulled in a total of $13.8 billion, the lowest amount since the publication began its annual rankings.
In 2022, following years of stellar performance during the stock market boom of the epidemic period, technology investors suffered the most losses on Wall Street. Fears of a recession and the rising cost of borrowing prompted a stock selloff in the technology industry last year, resulting in a significant decline.
Chase Coleman of Tiger Global Management suffered the largest individual loss, over $1.6 billion. The setback occurred just two years after Coleman topped the list with a $3 billion windfall.
TCI Fund Management’s Chris Sohn ranked second with losses of more than $1.2 billion, followed by D1 Capital’s Dan Sundheim, Lone Pine Capital’s Stephen Mandel and Viking Global Investors’ Andreas Halvorsen.
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