There’s allegedly 21,000 people in the U.S. worth over $100mm. How many guys in the US hedge fund industry, from rockstars like Ken G, Jim Simons, etc to maybe someone working as a long-tenured PM in tip-top pod are above this mark? Probably been discussed on the forum b4 and it’s obviously pointless but just for shits. Could see a good portion of that 21k (6-7% or so) coming from hedge funds but idk.
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I think 9 figures is more common than one would think. For example, the founder of my SM fund is one. He's is in his early 40s and nobody has ever heard of him.
A $1bn AUM 2/20 shop with average performance would make ~$40mm of fees per year. Realistically, a fund can operate at 50%+ operating margins at that level, assuming they have a reasonably scalable strategy. Assuming the fund founder has 60% equity (assume they gave a few points to early employees, two to three points to analysts with 5+ years exp, 20% to LPs that seeded the fund) then you can assume the founder is making ~$12mm pre tax / ~$7-8mm post tax per year. It would only take 8-10 years of doing that before they'd hit $100mm net worth.
How many $1bn+ AUM hedge funds are there? 500? I bet at least 1/3 the founders are at $100mm+ net worth. Then you get #2s-5s at places like Tiger, Pershing, Lone Pine, Viking, Greenlight, Baupost, etc, a few dozen people each at Bridgewater, Ren Tech, DE Shaw, people running $1bn+ strategies at multi strategy funds, a handful of pod shop PMs that get to the $10-15mm payout level per year and stay there (not sure any actually stay there), the odd $1bn hedge fund manager who has a couple killer years (e.g. Cliff Sosin with Carvana lmao), etc. Maybe 300-500 total $100mm net worth individuals? Kind of a wild guess.
My method also ignores the fact that HF is one of the only industries where you can make $1mm+ in your late 20's. There are probably a fair amount of people who hit $10mm net worth by 35 that stand to compound their way to $100mm by 60-65.
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