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The 10 highest earning hedge fund managers in 2016

In what was a tough year for the hedge fund industry, the richest still took home some eye-watering sums.

Tough times

It's not been a vintage year for hedge funds with the industry suffering net redemptions for only the third time ever, which according to Hedge Fund Research stood at $70 billion (£54 billion).

With poor performance and fee pressure combining to heap the pressure on hedge funds, Institutional Investor's Alpha (IIA) annual hedge fund rich list showed that the top 25 money-makers earned $11 billion between them, the lowest total since 2005 when they took home $9.4 billion.

Yet it's not all doom and gloom, with the top 10 earners taking home some eye-watering sums last year.

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Tough times

It's not been a vintage year for hedge funds with the industry suffering net redemptions for only the third time ever, which according to Hedge Fund Research stood at $70 billion (£54 billion).

With poor performance and fee pressure combining to heap the pressure on hedge funds, Institutional Investor's Alpha (IIA) annual hedge fund rich list showed that the top 25 money-makers earned $11 billion between them, the lowest total since 2005 when they took home $9.4 billion.

Yet it's not all doom and gloom, with the top 10 earners taking home some eye-watering sums last year.

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10: Israel (Izzy) Englander

Born in 1948, Englander is an American investor and philanthropist. He founded his Millennium hedge fund with Ronald Shear in 1989. The fund started out with $35 million and as of February 2017 had $34.77 billion in assets under management.

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9: David Shaw

Shaw, 66, founded his hedge fund in 1988 and has been a regular fixture in IIA's rich list in recent years. His eponymous company was once described by Forbes magazine as 'the most intriguing and mysterious force on Wall Street,' with Shaw himself described as 'King Quant'.

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8: Michael Hintze

Born and raised in Sydney, Australia, Hintze is a fluent Russian speaker and holds a BSc in Physics and Pure Mathematics and a BEng in Electrical Engineering from the city's university. He also holds an MSc in Acoustics from the University of New South Wales, an MBA from Harvard Business School.

After a stint in the Australian army rising to the rank of captain Hintze, 64, moved to New York to train in financial services, winning jobs with Salomon Brothers, Credit Suisse First Boston and Goldman Sachs. He launched his hedge fund CQS in 1999.

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7: Paul Singer

Singer, 73, was once described as one of the 'smartest and toughest money managers' in the hedge fund industry. He founded NML Capital Limited, a Cayman Islands-based offshore unit of Elliott Management Corporation in 1977, which specialises in distressed debt acquisitions.

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6: Kenneth Griffin

Born in 1968 in Daytona Beach, Florida, Griffin founded Citadel in 1990. In 2014 he donated $150 million to the financial aid program at Harvard University, the largest single donation ever made to the institution at the time.

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5: David Tepper

Tepper founded New Jersey-based Appaloosa Management in 1993. After earning a Masters in industrial administration from Carnegie Mellon University in 1982 he took up a position in the treasury department of Republic Steel in Ohio.

According to a report in the New Yorker, Tepper keeps a brass replica of a pair of testicles in a prominent spot on his desk, a present from former employees, which he rubs the gift for luck during the trading day to get a laugh out of colleagues.

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=3: David Siegel

Siegel founded Two Sigma Investments in 2001 alongside John Overdeck and Mark Pickard on the belief that innovative technology and data science could help discover value in the world's data to consistently deliver value for clients.

Siegel, who has had a lifelong interest in building intelligent computational systems, set up Two Sigma after leaving rival hedge fund DE Shaw.

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=3: John Overdeck

Overdeck worked alongside fellow Two Sigma co-founder David Siegel at DE Shaw, where he started his career. Before founding the firm, John spent two years at Amazon.com, first serving as vice president and technical assistant to Amazon.com founder Jeff Bezos, before going on to lead customer relationship management.

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2: Ray Dalio

Born in Jackson heights, New York in 1958 Dalio, the son of a jazz musician, started his investing career at the tender age of 12 when he bought shares in Northeast Airlines for $300. His investment tripled shortly after following a merger at the company.

After gaining an MBA from Harvard, he worked on the floor of the New York Stock Exchange and had spells at various broking firms before founding Bridgewater Associates in 1975.

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1: James Simons

James Simons was the only other hedge fund manager to earn more than $1 billion in 2016. Born in 1938, Simons founded New York-based Renaissance Technologies in 1982. He retired from the fund in 2009 but continues to serve as a non-executive chairman and adviser.

In 2006, the Financial Times dubbed Simons 'the world's smartest billionaire'. He is known for his studies, contributing to the development of string theory.

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