New research from Stanford and U.Chicago suggests market forces are increasingly rewarding the top one percent even if it’s a more meritocratic process overall.
Whether it inspires awe or disgust, industry observers love to gawk at how much money top hedge fund managers make compared with the rest of the population. David Tepper of Appaloosa Management, for example, made $2.2 billion in 2012. Ray Dalio of Bridgewater Associates made $1.7 billion. And Steve Cohen of SAC Capital Advisors made $1.4 billion. At the same time, real median household income in the U.S. for 2011 was $50,054; the bottom 80% of the U.S. population only has 7% of the nation’s wealth.
What advantages do money managers have? How have hedge funders and