Home

News

'So absurd': Bernie Sanders says the top 15 hedge fund managers earn more than all the kindergarten teachers in the US — here are 3 of the richest hedgies and what they're investing

What we know about the world’s richest.

Bernie Sanders speaks in a Congressional hearing with his hands up in the air and an exasperated look on his face.

Chip Somodevilla / Getty Images

While we adhere to strict editorial guidelines, partners on this page also provide us earnings.

By MoneySure Apr. 03, 2023

Last month, Bernie Sanders, Vermont senator and self-described democratic socialist, took another shot at his favorite target: The rich.

Don't miss

You could be the landlord of Walmart, Whole Foods and CVS (and collect fat grocery store-anchored income on a quarterly basis)
UBS says 61% of millionaire collectors allocate up to 30% of their overall portfolio to this exclusive asset class
'Hold onto your money': Jeff Bezos issued a financial warning, says you might want to rethink buying a 'new automobile, refrigerator, or whatever' — here are 3 better recession-proof buys

“The top 15 hedge fund managers on Wall Street make more money in a single year than every kindergarten teacher in America combined — over 120,000 teachers,” Sanders said in a video posted on Twitter and YouTube. He claimed that just over 40% of teachers made less than $60,000 in annual salary. Meanwhile, the average hedge fund manager in the United States makes $136,723 a year, according to Salary.com.

Of course, teachers and hedge fund managers earn their money in different ways, which makes this an apples-to-oranges comparison. Unlike teachers, hedge fund managers can lose money in any given year if their fund has clawback clauses and no management fees. Hedge fund compensations are linked to performance, which implies that the most well-paid and richest hedge fund managers are also the best performers.

Top hedge fund managers

With that in mind, here are three of the richest money managers in the world, and what they’re currently betting on.

Ray Dalio

Net worth: $19.1 billion

As of March, Ray Dalio holds $19.1 billion in personal wealth, making him the 82nd richest person in the world. His firm, Bridgewater Associates, currently has over $150 billion in assets under management, making it one of the largest hedge funds in the world.

According to the firm’s latest 13F filing, Dalio’s team was adding banks like JP Morgan Chase (JPM) and Bank of America (BAC) to the portfolio. Meanwhile, Procter & Gamble (PG) was one of the largest acquisitions worth 4.13% of the firm’s total portfolio.

Jim Simons

Net worth: $28.1 billion

Jim Simons is the second-wealthiest on this list, worth nearly $10 billion more than Ray Dalio. His New York-based hedge fund Renaissance Technologies has $50 billion in assets under management.

Simons recently added more shares of Apple (AAPL) to the portfolio while the biggest holding in the portfolio is Novo Nordisk (NVO). However, the fund’s investment strategy is notoriously complicated and based on statistical patterns and non-random events in the market. That’s why the equity portfolio may not explain Simon’s overall exposure to the market.

Ken Griffin

Net worth: $35 billion

Ken Griffin is the wealthiest hedge fund manager of the three, and it’s not particularly close. This can be attributed to his enormous 80% stake in Citadel Securities, the Miami-based hedge fund with over $57 billion in assets under management.

After gaining $16 billion on its investments last year, Citadel became the most successful hedge fund in the world in 2022. The firm bought Netflix stock recently, according to its latest 13F filing. Meanwhile, the largest and smallest positions in the portfolio are put and call options on the S&P 500 (SPY), which suggests that the fund’s investment strategy is a complicated mix of derivatives.

An important caveat

Hedge fund portfolios are complicated. What we know is based on regulatory filings like the Form ADV and the 13F. These forms are filed quarterly, which means the positions may have changed substantially by the time retail investors like us learn about it. They also don’t include details about derivatives such as options, futures or leverage. That means a hedge fund’s true position in a company is difficult to discern.

The strategic moves of successful hedge funds could offer broad clues about the market’s economic outlook, but shouldn’t be an integral part of a retail investor’s personal investment strategy.

About the Author

MoneySure

Editorial team

Moneysure is a website owned and operated by Wise Publishing, Inc., a rapidly growing digital publisher based in Toronto, Canada. Our website provides users with a wealth of information and resources related to personal finance, including articles, advice, and tools designed to help individuals make informed decisions about their money. Whether you are looking to reduce your debt, increase your savings, or invest in the stock market, Moneysure has the information you need to succeed. At Wise Publishing, we are dedicated to helping our users achieve their financial goals, and we are proud to be a trusted source of information for millions of people around the world. For more information about Wise Publishing or to discuss advertising opportunities, please visit our corporate website.

What to Read Next

More Americans report living paycheck to paycheck

Even the wealthy aren't immune.

By MoneySure

Is tokenized real estate the future of investing?

The verdict? The future is virtual.

By MoneySure

Kevin O'Leary is calling another crypto debacle

Is Mr. Wonderful bailing on crypto? Not quite.

By MoneySure

Four simple ways to stretch your paycheck

Sorry, Ronald. No increases this year.

By MoneySure

Disclaimer

The information provided on Moneysure is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Reliance upon information in this material is at the sole discretion of the reader. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter. We expressly disclaim any and all implied warranties, including without limitation, warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose.