World’s most profitable hedge funds in 2023

The world’s top 20 hedge funds made a record $67 billion in profits in 2023, around triple what they made in 2022. TCI Fund Management made a profit of $12.9 billion, followed by Citadel with $8.1 billion and Viking with $6 billion. 

This was revealed by LCH Investments, which conducts research on the hedge fund industry and is a global clearing house for financial trades. 

A hedge fund is a limited partnership of private investors whose money is managed by fund managers. 

Hedge funds are typically known for investing in higher-risk and more nontraditional assets compared with unit trusts and other investment funds.

They are also seen as being an asset class reserved for ultra-wealthy investors, with many catering specifically to the needs of high-net-worth individuals. 

Worldwide, hedge funds manage more than $4 trillion in assets. The vast majority of them are located in the United States.

The $67 billion in profits generated by the top 20 hedge funds surpassed the previous record of $65 billion during the pandemic-era boom of 2021. 

Hedge funds thrive during periods of high market volatility when their ability to ‘short’ stocks is most profitable. 

The research also found that the top 20 funds have made $755.4 billion in profits since inception, well above the $655.5 billion in total managed assets.

Below is a table of the top 10 most profitable hedge funds in 2023, with familiar names such as Ken Griffin’s Citadel in second position, Jim Simons’ Millennium at fourth and Bill Ackman’s Pershing Square in ninth. 

In 2023, Ray Dalio, one of the most famous hedge fund managers, saw his Bridgewater Associates fall out of the top ten to nineteenth. It is still the largest hedge fund manager in the world, with $72.5 billion in assets. 

Little-known TCI Fund Management took home the number-one spot as the most profitable hedge fund in 2023. 

Interestingly, it is based outside of the United States in England, where it is still run by its founder, Christopher Hohn. It generated $12.9 billion in profits last year. 

Hedge fund	2023 profits
TCI Fund Management	$12.9 billion
Citadel	$8.1 billion
Viking	$6 billion
Millennium	$5.7 billion
Elliot	$5.5 billion
D.E. Shaw	$4.2 billion
Lone Pine	$4.2 billion
Baupost	$3.8 billion
Pershing Square	$3.5 billion
SAC/Point 72	$3 billion