By Stephen Taub
It was a golden year for the richest hedge fund managers,
who became even richer in 2010. Virtually everyone who
qualified for AR's tenth annual ranking of the highest earning
hedge fund managers is a billionaire, led by John Paulson of
Paulson & Co. and Ray Dalio of Bridgewater Associates, who
made a combined $8 billion last year.
Paulson, whose hedge fund firm is the third largest in the
United States, made a record $4.9 billion to claim the top
spot, giving him $12.9 billion in earnings over the past four
years alone. Dalio, whose firm is the world's largest, earned
$3.1 billion in 2010 despite generating returns that exceeded
those of Paulson. But Paulson has more of his personal capital
in his funds than does Dalio.
Paulson's and Dalio's huge gains aside, 2010 was only the