Chris Hohn Net Worth and Career Path to Success

Chris Hohn is a British hedge fund manager and philanthropist. He is the founder and CIO of the hedge fund firm Ellington Capital Management.

Chris Hohn's background in finance is impressive, having worked at Goldman Sachs and other top investment firms. He's been in the industry for over 30 years.

His career took off when he started Ellington Capital Management in 1994. Since then, he's been making waves in the finance world.

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Chris Hohn made his money through a combination of working for top investment firms and founding his own hedge fund, The Children's Investment Fund (TCI). He started his career at Apax Partners and later joined Perry Capital, where he earned an estimated £75 million.

After working for several years, Hohn founded TCI in 2003, which quickly became a successful hedge fund. He established a formulaic charitable link, where 0.5% of the fund's assets were transferred to his wife's foundation each year, with an additional 0.5% for years in which the fund earned returns of more than 11%.

Hohn's earnings from TCI have been substantial, with £200 million in dividend payments in 2018, and a record-breaking £574m payout in 2020, which is believed to be the highest annual amount ever paid to one person in Britain.

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Chris Hohn's investment strategy is quite impressive, and it's no surprise he's amassed a huge fortune. He founded his own hedge fund, The Children's Investment Fund (TCI), in 2003.

TCI made regular contributions to The Children's Investment Fund Foundation, which was run by his wife, following a formula that called for transfers of 0.5 percent of the fund's assets each year, with an additional 0.5 percent of assets transferred for each year in which the fund earned returns of more than 11%. This formulaic charitable link was established to motivate himself.

In 2018, TCI paid out £200 million in dividend payments, slightly more than the fund profited. This was down from $274 million in 2017 and $364 million in 2016.

He has also taken a significant stake in Heathrow Airport, amassing a €730 million stake through a group of investment firms that had taken a 4% stake in the Spanish multinational Ferrovial.

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Chris Hohn's net worth is a staggering $5 billion, a figure that's increased by $1.9 billion from 2019.

Forbes recognized Hohn as one of the world's most generous philanthropists outside of the United States in 2019.

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Chris Hohn's career is a testament to his financial prowess. He started working for Apax Partners in 1994 after graduating.

Hohn's time at Perry Capital, a hedge fund on Wall Street, was particularly lucrative, earning him an estimated £75m. He was made head of Perry's London operations in 1998.

In 2003, Hohn took the plunge and set up his own hedge fund, The Children's Investment Fund. This move marked a significant shift in his career, allowing him to take control of his financial endeavors.

Hohn's hedge fund, TCI, donated regularly to a connected charitable fund, The Children's Investment Fund Foundation, run by his wife. The original formula involved transfers of 0.5 percent of the fund's assets each year, with a further 0.5 per cent of assets for every year during which the fund achieved returns of more than 11 per cent.

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Sir Chris Hohn, the founder of TCI Fund Management Limited, received a £275 million dividend, a significant payout despite a near halving of annual profits at his investment firm.

The dividend was paid to another business controlled by Hohn, which then invested the money into an investment fund. This isn't the first time Hohn has reinvested his dividends, following a pattern of previous payouts.

TCI Fund Management Limited's pre-tax profits dropped 48% to $370.9 million in the 12 months to the end of February, resulting in a smaller dividend compared to 2022.

Hohn's hedge fund group paid a smaller dividend due to a decline in management and performance fees earned by the business, which was a result of the negative investment performance of the funds it manages.

Rampant inflation and worries about the war in Ukraine hit markets last year, putting pressure on investors like Hohn.

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Hohn started his career in 1994 working for Apax Partners, a private equity group. He then moved to Perry Capital, a hedge fund on Wall Street, in 1996.

In 1998, he became the head of Perry's London operations and earned an estimated £75m during his time with the company. His success led him to establish his own hedge fund, The Children's Investment Fund, in 2003.

TCI donated regularly to The Children's Investment Fund Foundation, run by his wife, through a formulaic charitable link. This link involved transferring 0.5 percent of the fund's assets each year, with an additional 0.5 percent for every year the fund achieved returns of more than 11 percent.

Hohn's 2015 earnings of $250 million ranked him 12th among the 25 top earning hedge fund managers. His 2017 earnings of $274m were higher than his 2018 earnings of $200m.

In 2019, Hohn built a €730m stake in Heathrow Airport via a range of investment companies. He took a 4% stake in Spanish multinational Ferrovial through these investments.

For more insights, see: Chris Hohn Portfolio