One year ago
»» John Paulson sat atop AR’s annual Rich List ranking of the top-earning U.S. hedge fund managers, with 2010 compensation of $4.9 billion. His outsized payday beat those of fellow billionaires, including Ray Dalio, because he had more of his own personal money at stake in the fund in a profitable year.
But Paulson’s strategy proved significantly less profitable last year, when his funds (data here) fell significantly, and he was dropped from the rankings. Dalio was the highest earner in 2011, earning $3.9 billion, according to the newly released Rich List, followed by Carl Icahn and James Simons.
See also: NBC’s Today Show features AR’s Rich List
»» Greenlight Capital reaped millions off its bet on NCR, a Georgia company that produces ATMs and vending machines that spit out everything from cups of coffee to DVDs.
David Einhorn’s $7.7 billion fund was the largest shareholder in the company, with a 7.2% stake. Greenlight took a 11.5 million share position when the stock was trading near $12.50, and watched the stock climb to $18.14 as of approximately one year ago. A roller coaster 12 months later of ticker tape later, NCR sits at $21.67. Greenlight remains its biggest shareholder, though it has trimmed its position by 6%, according to the latest SEC filings.
Greenlight flagship fund was up about 2.% in 2011 and 6.7% this the year through the end of March.
The firm did not immediately respond to a request for comment.
Five years ago
»» Just a few months after starting its hedge fund ratings business, Moody’s Investors Service issued operations quality ratings for strategies run by Citadel Investment Group and Marathon Asset Management. Moody’s assigned OQ1 ratings (its highest) to Citadel’s Kensington Global Strategies fund and Wellington fund, as well as to two unnamed Marathon funds.
Two years later, Moody’s downgraded the Citadel funds, having concluded they hadn't properly adjusted their risk management controls to deal with the rapid decline in the markets. In 2010, however, Moody's reversed course and upgraded the funds back to OQ1.
The ratings business appears to remain a niche endeavor for the global bond ratings giant. Moody’s now examines 72 funds worldwide, according to its website, and last year announced a total of three ratings actions in the space. Moody’s spokesperson Abbas Qasim declined to comment.