As the U.S. economy shows signs of resilience with cooling inflation and rising consumer sentiments, investors might be looking for stocks to add to their portfolios. To support investors, TipRanks’ Expert Center contains several tools that allow direct access to expert opinions to make informed investment decisions.
One such tool is Top Hedge Fund Managers, which helps assess the performance of about 483 hedge fund managers. The tool ranks them according to their success rates, average returns, and the statistical significance of their trades. Today, let’s take a look at the top five hedge fund managers of December 2023.
#1. Nelson Peltz – Trian Fund Management L.P.
On top of the list is Nelson Peltz, with a portfolio gain of 565.66% since June 2013 and an average return of 45.63% in the last 12 months. Furthermore, a hedge fund manager’s return on a portfolio is best measured by the Sharpe ratio, which measures the portfolio’s returns against its risks. A Sharpe ratio greater than one means that the portfolio has higher returns than risks. Peltz has a Sharpe ratio of 8.67.
The hedge fund manager has invested the largest percentage of his funds (40.39%) in Walt Disney (NYSE:DIS), an entertainment company.
#2. Christopher Niemczewski – Marshfield Associates
Securing the second position is hedge fund manager Christopher Niemczewski, who boasts an impressive portfolio gain of 476.44% and a 19.66% average annual return in the past 12 months. Also, a Sharpe ratio of 7.97 is impressive. Insurance solutions provider Arch Capital Group (NASDAQ:ACGL) takes the number one spot in Niemczewski’s holdings, as it makes up 11.14% of the overall portfolio.
#3. John Kim – Night Owl Capital Management L.L.C.
John Kim bags the third spot on the list. His portfolio has gained 573.3% and witnessed an average return of 44.33% in the past twelve months. Kim has a Sharpe ratio of 7.73. Interestingly, his portfolio is largely dominated (10.93%) by the tech giant Alphabet Class C (NASDAQ:GOOG).
#4. Chuck Akre – Akre Capital Management L.L.C.
Chuck Akre holds the fourth position on the list and boasts an average annual return rate of 28.34%. His portfolio has gained an impressive 468.17% since June 2023 and has a Sharpe ratio of 7.29. Akre’s largest holding is payment-processing company Mastercard (NYSE:MA), accounting for 20.09% of the total portfolio.
#5. Edgar Wachenheim – Greenhaven Associates Inc.
Edgar Wachenheim is placed fifth on the list. The hedge fund manager’s portfolio has recorded a 488.26% gain and an average return of 39.63% in the past twelve months. Wachenheim has a Sharpe ratio of 6.31. Home construction company Lennar (NYSE:LEN) remains his top investment choice, representing 13.03% of the overall portfolio.
Ending Note
As hedge funds and large institutions are known for generating market-beating returns, investors should closely watch their trades to form investing ideas. However, when investing for the long term, one must also consider analyzing a stock on multiple parameters, including analysts’ ratings, fundamentals, and insider transactions, among others.
