Cima de la montaña: High performing investors of 2013

156851447

George Soros

2013 Earnings: $4 billion
The legend continues. In 2013, George Soros had a pretty good year, with Soros Fund Management delivering returns north of 22%. That was not good enough to beat the U.S. stock market, but it still made Soros a lot of money. Soros is not involved in the day-to-day operations of Soros Fund Management, the $29 billion family office that manages Soros’ fortune and money he has given away to his foundations. The firm is overseen by Scott Bessent, Soros Fund Management’s chief investment officer, but Soros remains involved and the firm’s big short bet on the yen at the start of 2013 was vintage Soros. He continues to be a market moving force and his short of the yen after Japanese policy makers accelerated monetary easing was widely watched. The famous philanthropist was also involved in major hedge fund battleground stocks last year. Betting against fellow hedge fund billionaire Bill Ackman’s “pyramid scheme” hypothesis, Soros sided with Carl Icahn in going long the nutritional supplements company Herbalife, becoming one of the company’s largest shareholders. He trimmed the position near the end of the year. Born in Budapest, Soros survived the Nazi occupation of Hungary and went on to study at the London School of Economics before launching his hedge fund in 1969.

https://www.youtube.com/watch?v=HseUNLP6q24#t=23

Steve Cohen

2013 Earnings: $2.3 billion
In 2013, Cohen’s SAC Capital Advisors hedge fund firm pleaded guilty to criminal insider trading charges and agreed to pay $1.8 billion in fines and penalties to the federal government. Federal prosecutors in Manhattan worked on what turned out to be two more successful prosecutions of former SAC Capital employees and Cohen is transforming his Stamford, Ct., hedge fund firm into a family office, returning billions of dollars to outside investors. But through it all, Cohen, 58, continued to do what he does best—make profitable trades and earn lots of money. SAC Capital knocked out net returns of about 19% in 2013. That was not as good as what the U.S. stock market returned, but it beat most other hedge fund managers.

John Paulson

2013 Earnings: $1.9 billion
The biggest comeback ever? After three very tough years, Paulson, 58, came roaring back in 2013. His $2.7 billion Recovery Fund posted net returns of 63%, his Paulson Enhanced funds returned 33% and the Advantage funds generated net returns north of 26%. About 80% of the $20 billion in assets that Paulson’s Paulson & Co., hedge fund firm oversees are now above their high watermark, meaning the firm is charging rich performance fees again. The only trouble spot in 2013 was gold. The 28% plunge of the yellow metal in 2013 not only hurt the returns of his relatively small Gold Fund, in which he has a large stake, it also dented the returns of the gold-denominated holdings he personally keeps in his other hedge funds.

Carl Icahn

2013 Earnings: $1.7 billion
Carl Icahn was everywhere in 2013. He battled with Michael Dell, helped push Aubrey McClendon out of Chesapeake Energy, made a killer trade on Netflix, fought with William Ackman over Herbalife, and loudly lobbied for Apple to repurchase more of its stock. In the end, Icahn’s investment fund returned 31% in 2013, which is pretty impressive given that its portfolio was largely hedged.

robotic convoy

source:forbes

Advertisements

Los nuevos reyes del Antiguo: David Tepper

2013 Earnings: $3.5 billion
Tepper has set a new standard for hedge fund managers. His track record has long been phenomenal, but since the financial crisis his returns have reached a whole new level. In 2013, the 56-year-old founder of Appaloosa Management outperformed the U.S. stock market and the vast majority of hedge fund managers, with his biggest fund posting net returns of more than 42%. Over the last five years, Tepper’s main hedge fund has generated annualized net returns of nearly 40%—and gross returns of some 50%. In what has almost become an annual tradition, Tepper gave back some cash to his investors at the end of the year. In 2013, Tepper’s Appaloosa celebrated its 20th anniversary by pledging $20 million to various charities. Tepper also gave $67 million to Carnegie Mellon University last year—adding to the $55 million he previously gave the university—and continued to support other causes like basic needs and education.

Appaloosa Management is an American hedge fund founded in 1993 by David Tepper and Jack Walton specializing in distressed debt.Appaloosa Management invests in public equity and fixed income markets around the world.

In 1993 David Tepper and Jack Walton founded Appaloosa Management, an employee owned hedge fund, in Chatham, New Jersey.[4][5] The firm through the 1990s was known as a junk bond investment boutique and through the 2000s a hedge fund.

2002 Conseco & Marconi Corp.

In the fourth quarter of 2002 Appaloosa Management returns were heavily a result of junk-bond and distressed debt bets in Conseco and Marconi Corp. that the market was bottoming out.

2007 Delphi

Assets under management in 2007 were $5.3 billion. The Financial Times reports the company has “attracted interest for its large ownership position in Delphi, the bankrupt car parts supplier, and its clashes on whether management has the shareholders best interests in mind or those of GM and the UAW.”

2008 financial crisis through 2011

Appaloosa survived the financial crisis of 2008 with relatively few investor redemption orders.

From 2009 to 2010 Appaloosa Management’s assets under management grew from $5 billion to $12 billion.

In November 2010 the New York Times reported total assets under management of $14 billion.

In 2010 it was reported that since 1993 Appaloosa Management had returned $12.4 billion to clients—ranking it sixth on a ranking of total returns to clients by managers since inception.

In 2011 the company was awarded the Institutional Hedge Fund Firm of the Year award.

In Sep 2011, a Delaware bankruptcy court found that Appaloosa Management is one of four hedge funds that had played a role in Washington Mutual’s restructuring which might have received confidential information that could have been used to trade improperly in the bank’s debt.

Investment Strategy

Appaloosa Management’s investments focus on undiversified concentrated investment positions.Appaloosa invests in the global public equity and fixed income markets with a focus on “equities and debt of distressed companies, bonds, exchange warrants, optionsfutures, notes, and junk bonds.” According to BusinessWeek, the firm’s client base consists of high net worth individuals, pension and profit sharing plans, corporations, foreign governments, foundations, universities, and other organizations.” Investors commit to a locked period of three years during which their withdrawals are limited to 25 percent of their total investment.

0x600

Palomino Fund

The Palomino Fund from its inception in 1995 to 1998 had a 25 percent return. After Russia defaulted, the fund lost 49 percent of its value between February to September 1998. The fund returned –26.7% percent in 2008 and 117.3 percent in 2009. The company was ranked by Bloomberg Markets as the top performing fund of any hedge fund manager managing over one billion dollars

source:businessweek

देवताओं और गोल्ड: Metacapital Mortgage Opportunities

io102sZISGIg

                                            Manager: Deepak Narula

Management Firm: Metacapital Management

Location: U.S.

Strategy: Mortgage-backed arbitrage

Assets, in billions: $1.5

YTD total return: 37.8%

2011 return: 23.6%

(Reuters) – Deepak Narula, one of the hedge fund industry’s best known mortgage bond traders, said he sees a much tougher year ahead for investors but sees opportunities in certain mortgage trades.

Next year will “be a more challenging year” than 2013 because of “much greater uncertainty around how the Fed will behave,” and because of lofty bond and equity valuations, Narula, the founder of $1.45 billion hedge fund Metacapital Management, said on Wednesday.

This year Narula’s main fund has struggled to produce gains, though an investor recently told Reuters the portfolio has been able to reduce losses in the last few months. However, the firm’s $240 million Rising Rates fund, launched in May, has climbed about 14 percent year-to-date.

Last year, Metacapital’s flagship fund soared more than 40 percent, as structured credit funds rose about 19 percent on averaged. “Absent some large shock to the system” that causes initial cheapening of assets “those returns are history,” Narula said.

Those funds have only risen about 8 percent on average this year.

Managers who invested in residential mortgage-backed securities throughout 2012 and the beginning of 2013 benefited mightily from the Federal Reserve’s efforts to keep interest rates low, which pushed up the prices of mortgage bonds.

eastern-states-overseas-highway-af

Deepak Narula has given us some sound advice – you want to be careful going against the mission of the Federal Reserve.

And, his hedge fund earned a 38 percent return last year, the number one hedge fund performer according to Bloomberg News.

“To revive the housing market, the Fed has thrown a lot of firepower at agency mortgage-backed securities. Policy makers have worked hard to let homeowners refinance. They’ve been clear that that’s their mission-and you want to be careful going against that mission.”

George Soros, who bet against the British pound in the 1990s and made millions of dollars, I’m sure, would agree.

In addition, three of the top five funds in the Bloomberg Markets list of top performing hedge funds also were investors in mortgage securities.

“Betting on mortgage securities outpaced every other strategy, with an average return of 20.2 percent against an industry average of just 1.3 percent,” states the Bloomberg report.

But, hedge funds are not the only ones that benefited from the Federal Reserve action. Check out these two posts: “Is it too late to get into the housing rebound?” and “Is it too late to get into the housing rebound? Part Two“.

Three cheers for saving the middle class!

Nothing seems to work better as a way to make money than to work with a government policy or program. Ask the people who started up Solyndra!

The major problem with betting against a government policy or program … don’t be too early.

Narula has not always been successful in playing the mortgage market. He started his fund Metacapital in 2002. He saw the danger in the market for subprime mortgages as early as 2005 and start shorting them. Subprime mortgages did tank, but not until three years later.

the-27-incredible-views-you-had-only-see-if-you-were-a-bird-1

In 2006 his fund had to return money to investors and in 2007 he had to close the fund. He was “right,” but then again, he was “wrong.”

As he states, “If you are too early, you are wrong.”

But, betting “with” government policy works on the upside as well.

Over the past fifty years or so, the federal government, supported by the Federal Reserve, created credit by the millions of dollars in order to keep unemployment at low levels and to foster home ownership for the middle class and below. We had a sustained period of “credit inflation.”

Three things happen in a period of credit inflation: people take on more and more risk; people build up more and more financial leverage; and people engage in financial innovation. The last fifty years is known for all three of these things happening.

And, during this period, more and more people went to work in the financial and more and more companies added financial subsidiaries. By the early2000s, a substantially greater percentage of Americans worked in the financial sector than ever before. And, many manufacturing companies, likeGeneral Electric (GE) and General Motors (GM), earned more than fifty percent of their profits from their financial subsidiaries.

The “mission” of the federal government and the Federal Reserve System was to provide the economy with high levels of employment and greater degrees of home ownership.

The mental attitude of the leaders of American finance and industry? Well, as summarized by Charles (Chuck) Prince, the CEO of Citigroup, “”As long as the music is playing, you’ve got to get up and dance.”

Those that left the dance floor “too soon” were “right” that things were getting too risky and might fall apart. But, as Narula said, “If you are too early, you are wrong.”

Your government creates opportunities to make money … and to make lots of it. The big money to earn will, however, not go to those that will help to reduce the imbalance in the income/wealth curve. As we have seen, the past fifty years of credit inflation have done more to create the imbalances that now exist than reduce them.

And, government “missions” will continue to do so in the future.

So, one way to make money is to determine what is the federal government or the Federal Reserve “mission” and bet “with” the mission. That is, find out what these people are trying to do and develop an investment strategy that “uses” this mission. We know that the federal government and the Federal Reserve, in their well-meaning way, will continue on with their policies for a long time.

The Federal Reserve says that short-term interest rates will remain low until 2015. Really?

George Soros can tell you that when a government positions itself in this way, opportunities exist.

But, remember what Narula said – to be too early is to be wrong. Also, if you try and get into the game too late or stick around the game for too long, you will be wrong.

Timing is important.

Three cheers for Deepak Narula!

Location Type Single Location
State of Incorporation New York
Annual Revenue Estimate 120000
Employees 2
SIC Code 6722, Management Investment Offices, Open-End
NAICS Code 525910, Open-End Investment Funds
Business Categories

未来的国王:Top little known Hedge Funds

bridgewater-associates

Bridgewater manages approximately $150 billion in global investments for a wide array of institutional clients, including foreign governments and central banks, corporate and public pension funds, university endowments and charitable foundations. Approximately 1,400 people work at Bridgewater, which is based in Westport, Connecticut.

Founded in 1975 out of a two-bedroom apartment, Bridgewater remains an independent, employee-run organization. Throughout its 39-year history, Bridgewater has been recognized as a top-performing manager and an industry innovator, winning over 40 industry awards in the past five years alone. In both 2010 and 2011, Bridgewater ranked as the largest and best-performing hedge fund manager in the world and in both 2012 and 2013 Bridgewater was recognized for having earned its clients more than any other hedge fund in the history of the industry. Its clients and employees routinely give Bridgewater top satisfaction ratings in annual surveys.

81-victor-khosla-tied

Management Firm, Location: Blue Harbour Group, U.S.

Strategy: Activist

Assets (in billions): $1.3

YTD Total Return: +19.8%

2012 Return: +16.2%

Read more: http://www.businessinsider.com/30-most-successful-hedge-funds-of-2013-2014-1?op=1#ixzz2uaE3WWpw

Blue Harbour Group, L.P., a Registered Investment Advisor, is an investment manager focused on investing in undervalued U.S. public companies. Our mandate is to serve as a trusted lead investor, working in a collaborative and supportive manner with companies to identify initiatives to unlock and create shareholder value. We are long term investors with a multi-year investment horizon.

 

Clifton S. Robbins is the Chief Executive Officer and Portfolio Manager of Blue Harbour Group, L.P. and has been an investor for over twenty-five years. Prior to founding Blue Harbour Group in 2004, Mr. Robbins had been a Managing Member of General Atlantic Partners, LLC. Prior to joining General Atlantic Partners in 2000, Mr. Robbins had been a General Partner of Kohlberg Kravis Roberts & Co. which he joined in 1987. Mr. Robbins began his career in Mergers & Acquisitions at Morgan Stanley & Co. in 1980.

 

Mr. Robbins is complemented by a team of senior professionals responsible for generating investment ideas, developing relationships with management teams, performing research and due diligence on prospective investments, and monitoring portfolio investments. The team consists of professionals with experience ranging from six to fifteen years in the areas of corporate finance, private and public market investing.

blue_harbor

INVESTMENT STRATEGY

Blue Harbour’s approach to investing in the public markets is similar in many respects to private equity investors. In this regard, Blue Harbour’s investment approach seeks to add value by working collaboratively with company management to design and to implement strategic initiatives that unlock and create shareholder value. We focus on U.S. public companies that could create significant value by implementing strategic or financial change. Much like private equity investors, a critical component of our strategy is to support superior management teams who are committed to creating value for shareholders. Importantly, unlike private equity investors, Blue Harbour’s mandate to invest in publicly traded securities affords us the advantages of not paying control premiums nor are we subject to the illiquidity and leverage of private equity models.

  • We source investment opportunities primarily through publicly traded markets but can also buy equity stakes directly from the issuer if appropriate
  • We acquire a significant minority stake and become a lead shareholder
  • We acquire our positions at the public market price instead of by auctions
  • We collaborate with company management on critical strategic and financial issues

 HT Capital Management – Hong Kong

images

AP Images

Founded: 1997

AUM: $673.2 million

Manager: Ophelia Tong

  • Tong co-founded HT Capital with her husband Karl Hurst.

Strategies: Long Equity

  • HT’s two funds combined to return 6.08% last year.

 

Source:

http://www.htcapital.hk/

http://www.bwater.com/

El oro y la creencia más allá del petróleo dioses muertos ‘: John D. Rockefeller

John-D-Rockefeller

This is a rare example of how principle,business and investing can work. It is the secret behind Warren Buffet and some of the top Hedge Fund Managers. It is not about the money Warren Buffett quoted in speech to his company before others could speak his words. John D. Rockefeller was one of the best examples of this:

John Davison Rockefeller (July 8, 1839 – May 23, 1937) was an American business magnate and philanthropist. He was a co-founder of theStandard Oil Company, which dominated the oil industry and was the first great U.S. business trust. Rockefeller revolutionized the petroleum industry, and along with other key contemporary industrialists such as Andrew Carnegie, defined the structure of modern philanthropy. In 1870, he co-founded Standard Oil Company and aggressively ran it until he officially retired in 1897.

In spite of his father’s absences and frequent family moves, young John was a well-behaved, serious, and studious boy. His contemporaries described him as reserved, earnest, religious, methodical, and discreet. He was an excellent debater and expressed himself precisely. He also had a deep love of music and dreamed of it as a possible career.Early on, he displayed an excellent mind for numbers and detailed accounting.

His father, William Avery Rockefeller, was a “pitch man” — a “doctor” who claimed he could cure cancers and charged up to $25 a treatment. He was gone for months at a time traveling around the West from town to town and would return to wherever the family was living with substantial sums of cash. His mother, Eliza Davison Rockefeller, was very religious and very disciplined. She taught John to work, to save, and to give to charities.

std-oil

By the age of 12, he had saved over $50 from working for neighbors and raising some turkeys for his mother. At the urging of his mother, he loaned a local farmer $50 at 7% interest payable in one year. When the farmer paid him back with interest the next year Rockefeller was impressed and said of it in 1904: “The impression was gaining ground with me that it was a good thing to let the money be my servant and not make myself a slave to the money…”

From 1852 Rockefeller attended Owego Academy in Owego, New York, where the family had moved in 1851. Rockefeller excelled at mental arithmetic and was able to solve difficult arithmetic problems in his head — a talent that would be very useful to him throughout his business career. In other subjects Rockefeller was an average student but the quality of the education was very high.

In 1853, the Rockefellers moved to Cleveland, Ohio, and John attended high school from 1853 to 1855. He was very good at math and was on the debating team. The school encouraged public speaking and even though Rockefeller was only average, it was a skill that would prove to useful to him.

download (2)

It was the logic of this competitive structure that determined Rockefeller and Flagler’s course of action.

  1. They built high-quality, larger, better-planned refineries. They built permanent facilities using the best materials available.
  2. They owned their own cooperage (barrel making) plant, their own white-oak timber and drying facilities, and bought their own hoop iron. Consequently, they cut the cost of a barrel from about $3.00 to less than $1.50.
  3. They manufactured their own sulfuric acid (which was used in the purification process) and devised technology to recover it for re-use.
  4. They owned their own drayage service, consisting of at least 20 wagons in 1868.
  5. They owned their own warehouses in New York City and their own boats on the Hudson and East Rivers to transport their oil.
  6. They were the first to ship oil via tank cars (albeit big wooden tubs mounted in pairs on flat cars — later to evolve into the modern form of a tank car). And they owned their own fleet of tank cars.
  7. They built huge holding tanks near their refineries for storing crude and refined oil, with the equipment for drawing off the oil from the tank cars into the holding tanks.
  8. Their huge size made it economical to build the necessary physical plant to handle all the “waste” products from the refining of kerosene. They began manufacturing high quality lubricating oil that quickly replaced lard oil as a lubricant for machinery. Gasoline, which many refiners surreptitiously dumped into the Cuyahoga River at night (the river often caught fire), Rockefeller and Flagler used as fuel. They manufactured benzene (used as a cleaning fluid; a solvent for fat, gums, and resin; and to make varnish), paraffin (insoluble in water, used for making candles, waterproofing paper, preservative coatings, etc.), and petrolatum (used as a basis for ointments and as a protective dressing; as a local application in inflammation of mucous membrane; as an intestinal lubricant, etc. — white petrolatum later marketed under the brand name Vaseline). They shipped naphtha (volatile inflammable liquid used as a solvent in dry cleaning and in wax preparations, varnish and paint making, burning fluid for illumination, and as a fuel for motors) to gas plants and other users.

 

 

El emperador de Oro: Carlos Slim King of Mexico

21

Carlos Slim

foto_bio_28g

Carlos Slim Helú  is a Mexican business magnate, investor, and philanthropist. From 2010 to 2013, Slim was ranked as the richest person in the world, but that position has been regained by Bill Gates. His extensive holdings in a considerable number of Mexican companies through his conglomerateGrupo Carso, SA de CV, have amassed interests in the fields of communications, technology, retailing, and finance. Presently, Slim is the chairman and chief executive of telecommunications companies Telmexand América Móvil.

Carlos Slim Helú studied Civil Engineering at the National Autonomous University of Mexico (known by its Spanish acronym UNAM) School of Engineering, where he also taught Algebra and Linear Programming while studying for his degree, meaning that he was both a student and professor.

In 1965, when he was only 25 years old, he began to build the foundations of Grupo Carso. Inmobiliaria Carso was incorporated in January 1966, three months before marrying Soumaya Domit Gemayel, hence the name Carso, which is a combination of the first three letters of Carlos and the first two letters of Soumaya.

Since the 1980s he has been a noted businessman in various industrial, real estate and commercial fields. In 1982, which was a critical time in the history of Mexico with the debt crisis, nationalization of the banking system and the country’s finances nearly paralyzed, Carlos Slim and his Grupo Carso decided to invest heavily and actively. They made diverse investments and acquisitions during this period, one of which was Cigatam, which turned out to be the first and most important because of its cash flow, providing the Group with sufficient liquidity to capitalize on available opportunities and thereby increase itsacquisitions of big companies, including: Hulera el Centenario, Bimex, Hoteles Calinda (today, OSTAR Grupo Hotelero) and Reynolds Aluminio. Some time later the purchase of Seguros de México was closed, and Grupo Financiero Inbursa was formed by integrating Casa de Bolsa Inversora Bursátil, Seguros de México and Fianzas La Guardiana. By 1985, Grupo Carso acquired control of Artes Gráficas Unidas, Fábricas de Papel Loreto y Peña Pobre, and also a majority stake in Sanborns and its affiliate Dennys. In 1986 Minera FRISCO and Empresas Nacobre were acquired, as well as their affiliates, and control of the Euzkadi tire company, the market leader at the time, was also acquired, as was a majority stake in General Tire some years later.

carlos-slim-acirceurordquo-the-worlds-richest-man

1. He’s the first ‘World’s Richest’ man from a developing nation
2009 was good to the super-rich in poorer nations: Brazil and Russia each doubled their billionaire counts; and China’s new total (64 billionaires) ranks second only to the America. Slim, as an owner of more than 220 companies in telecommunications, banking, railways, and restaurants (to name a few), saw his fortune swell by $18.5 billion last year.

2. In Mexico, Slim is “Mr. Monopoly”
The Wall Street Journal once quipped that “it’s hard to spend a day in Mexico and not put money in [Slim’s] pocket.” You can barely make a call without doing so: Slim’s phone company Telmex — snapped up on the cheap in 1990 — controls 80 percent of the landlines; its subsidiary América Móbil handles 70 percent of the cell service.

3. He bailed out The New York Times
In addition to owning 6.9 percent of The New York Times Company, Slim loaned the struggling publisher $250 million last year, essentially saving it from financial ruin. Recently, rumors that Slim might buy a controlling stock in the company caused its shares to jump. Slim, however, denies the stories.

4. He loves baseball
While soccer remains Mexico’s most popular sport, Slim has an avid affinity for baseball — especially the New York Yankees. In 1998, he penned an article for a Mexico City magazine about obscure historical baseball figures. And he once agreed to a USA Today interview under the condition that the journalist pass along Slim’s suggestion for “improving” the newspaper’s box scores to his editor.

5. In the U.S., he’d be a “trillionaire”
Carlos Slim’s net worth is equivalent to about 7 percent of Mexico’s GDP.  For Bill Gates to have the same grip on the U.S. economy, says Brian Winter in Foreign Policy, he would have to be worth “909 billion” and own “Alcoa, Phillip Morris, Sears, Best Buy, TGIFriday’s, Dunkin’ Donuts, Marriott, Citibank, and JetBlue.”

6. He’s from a Lebanese family
Julian Slim Haddad, Carlos’s father, immigrated to Mexico from Lebanon in 1902 to escape military conscription. He eventually created highly successful import and real estate businesses worth millions. The family of Carlos’ mother, also from Lebanon, settled in Mexico City at the end of the 19th century.

7. He’s famously frugal 
From a young age, Slim has practiced legedary financial restraint. He still lives in the same modest 6-bedroom home where he’s resided for the past three decades. His cramped bedroom is “the size of a Manhattan hotel room.” And, despite the prevalence of kidnappings in Mexico, Carlos Slim still drives himself to work.

Sources:

Forbes

theweek.com

金の王: New Rulers of Wallstreet

kent_dover_castle

 

Peter Thiel

peter-thiel1

 

Peter Thiel has gone from successful entrepreneur to super successful venture investor. The PayPal cofounder was Facebook’s first professional investor, giving Mark Zuckerberg and his hoodied cohorts a $500,000 check in 2004 in return for more than 10% of the company. Thiel still sits on Facebook’s board, but sold most of his stake in the Menlo Park, Calif.-based social networking company following its May 2012 IPO. His various venture firms include Founders Fund, whose stated goal is to invest in companies that can affect dramatic technological change. To that end, Founders Fund has backed rocket builder SpaceX and CIA-backed data-mining software company, Palantir, where he is also a cofounder. Ideological to the point of eccentricity, Thiel believes technology rarely repeats itself: “There’s a sense in which technology is, by definition, non-repetitive. And every moment in technological history only happens once.” As Palantir chairman, Thiel has personally invested $40 million in the Palo Alto, Calif. firm. FORBES estimates that he controls more than 12% of the company. Thiel has long maintained that Palantir could be just as valuable as Facebook. “There’s Google, then Facebook-which is search for people-and then there’s Palantir, which can help institutions search through their massive reams of data,” he told FORBES. He is up $400 million this year because of new revelations regarding his Palantir holdings.

 

Ray Dalio

09_ray_dalio

 

After completing his education, Dalio worked on the floor of the New York Stock Exchange and invested in commodity futures.[6] He later worked as the Director of Commodities at Dominick & Dominick LLC.[7] In 1974, he became a futures trader and broker at Shearson Hayden Stone.[6] In 1975, he founded the Westport, Connecticut based investment management firm, Bridgewater Associates which in 2012 became the largest hedge fund in the world with nearly $120 billion in assets under management.[6]

In 2007, Ray Dalio predicted the global financial crisis[8] and in 2008 published an essay, “How the Economic Machine Works; A Template for Understanding What is Happening Now”,[9] which explained his model for the economic crisis. He self-published a 123 page volume called Principles, in 2011, which outlined his logic and personal philosophy for investments and corporate management based on a lifetime of observation, analysis and practical application through his hedge fund.[10][11][12] In 2013 Dalio began sharing his “investment secrets” and economic theories onYou Tube via a 30 minute animated video which he narrates, called How The Economic Machine Works.[13]

John Paulson

john-paulson

 

While assets under management at Paulson & Co. are down to $18 billion from $36 billion in early 2011, John Paulson’s hedge funds are performing well in 2013 thanks to bets on stocks like MGM Resorts and Aetna. Through the first six months of the year, the firm’s Credit Opportunities fund rose 11.2% net of fees, its Enhanced fund returned 15.6% and its Recovery fund produced a 25.2% return.  However, because a significant portion of his personal investments in Paulson & Co. funds are gold denominated, Paulson’s return on his own capital was more measured, as gold sank through the first half of the year. In an unusual deal for his firm, the outfit won a bid in August to take piano maker Steinway private for $512 million. Paulson, who will always be remembered for making billions shorting subprime mortgage securities in 2007, now appears to like real estate; one of his funds picked up 875 acres in Las Vegas in 2012.

Age: 58
Source Of Wealth: hedge funds, Self Made
Residence: New York, NY
Citizenship: United States
Marital Status: Married
Children

Alten Könige: The old kings of Investing

powerful-photos-14

Philip Fisher

 

philip-fisher

Philip Fisher is the father of investing in growth stocks. He started his own investment firm, Fisher & Company, in 1931, and managed it until his retirement in 1999 at the age of 91. Fisher achieved excellent returns for himself and his clients during his 70 year career.

Fisher focused on investing for the long term. He famously bought Motorola stock in 1955, and held it until his death in 2004. He created a fifteen point list of characteristics to look for in a common stock and were focused on two categories: management’s characteristics and the characteristics of the business. Important qualities for management included integrity, conservative accounting, accessibility and good long-term outlook, openness to change, excellent financial controls, and good personnel policies. Important business characteristics would include a growth orientation, high profit margins, high return on capital, a commitment to research and development, superior sales organization, leading industry position and proprietary products or services.

Benjamin Graham

Benjamin-Graham-300x169

Benjamin Graham is most widely know for being a teacher and mentor to Warren Buffett. It is important to note, however, that he attained this role because of his work “father of value investing”. He made a lot of money for himself and his clients without taking huge risks in the stock market. He was able to do this because he solely used financial analysis to successfully invest in stocks. He was also instrumental in many elements of the Securities Act of 1933, which required public companies to disclose independently audited financial statements. Graham also stressed having a margin of safety in one’s investments – which meant buying well below a conservative valuation of a business.

George Soros

george-soros-300x187

George Soros is most commonly known as the man who “broke the Bank of England”. In September 1992, he risked $10 billion on a single trade when he shorted the British Pound. He was right, and in a single day made over $1 billion. It is estimated that the total trade netted almost $2 billion. He is also famous for running his Quantum Fund, which generated an average annual return of more than 30% while he was the lead manager.

Soros focuses on identifying broad macro-economic trends into highly leveraged plays in bonds and commodities. Soros is the odd-man out in the Top 10 Greatest Investors, has he doesn’t have a clearly defined strategy, more of a speculative strategy that came from his gut.