Pershing Square's Triumphant Return
Pershing Square Capital Management, under the leadership of Bill Ackman, has made a remarkable return to the top ranks of the world’s best-performing hedge funds.
After a brief hiatus from the list in 2015, the firm has not only reclaimed its position but also outperformed its competitors. With $17.9 billion in assets under management (AUM), the New York-based firm generated net gains of $3.5 billion in 2023, reaching a total of $18.8 billion in gains since its inception in 2004.
The resurgence of Pershing Square has been nothing short of extraordinary, securing a place on LCH’s list of the world’s 20 top-performing hedge funds. The fund’s impressive returns of $12.3 billion over the past three years constitute almost two-thirds of its cumulative gains.
Pershing Square’s achievements reflect a broader trend among the top 20 hedge funds, which collectively generated net gains totaling $67 billion in 2023. These top funds manage just 18.9% of the total assets across the sector.
| Hedge fund | AUM $bn | 2023 gains $bn | Overall gains $bn | Year started |
| Citadel | 56.8 | 8.1 | 74.0 | 1990 |
| D.E. Shaw | 43.8 | 4.2 | 56.1 | 1988 |
| Millennium | 61.9 | 5.7 | 56.1 | 1989 |
| Bridgewater | 72.5 | (2.6) | 55.8 | 1975 |
| Elliott | 62.2 | 5.5 | 47.6 | 1977 |
| Soros | N/A | N/A | 43.9 | 1973 |
| TCI | 50.0 | 12.9 | 41.3 | 2004 |
| Viking | 30.5 | 6.0 | 40.9 | 1999 |
| Baupost | 27.4 | 3.8 | 37.0 | 1983 |
| Farallon | 40..4 | 2.6 | 35.7 | 1987 |
| Lone Pine | 15.9 | 4.2 | 35.6 | 1996 |
| Appaloosa | 17 | 2.7 | 35.0 | 1993 |
| SAC/Point 72 | 31.0 | 3.0 | 33.0 | 1992 |
| Och Ziff/Sculptor | 28.7 | 2.3 | 32.2 | 1994 |
| Brevan Howard | 35.6 | 0.4 | 28.5 | 2003 |
| Egerton | 14 | 2.3 | 23.9 | 1995 |
| Davidson Kempner | 37 | 1.8 | 21.0 | 1983 |
| King Street | 9.5 | 0.9 | 19.5 | 1995 |
| Caxton | 13.4 | (0.3) | 19.5 | 1983 |
| Pershing Square | 17.9 | 3.5 | 18.8 | 2004 |
The top 20 funds have accounted for 83% of all hedge fund gains over the past three years. They have amassed net gains worth $775.4 billion, overshadowing the $862 billion gains made by all other hedge funds in the sector.
TCI Fund, led by Sir Chris Hohn, was the top performer in 2023, recording net gains of $12.9 billion. Citadel LLC, led by Ken Griffin, has set a benchmark, achieving net gains of $74 billion since its inception in 1990. Despite a $2.6 billion loss in 2023, Ray Dalio’s Bridgewater Associates has generated an impressive $55.8 billion since its inception in 1975.
In conclusion, the hedge fund landscape in 2023 witnessed Pershing Square’s resurgence alongside other formidable players. Their ability to consistently outperform and attract top talent underscores a paradigm shift in the dynamics of the hedge fund sector.
