Visual Capitalist |
- Bitcoin is the Fastest Asset to Reach a $1 Trillion Market Cap
- What The Data Says About Wealth Inequality
- The World’s Top 10 Hedge Fund Managers by Earnings
| Bitcoin is the Fastest Asset to Reach a $1 Trillion Market Cap Posted: 12 Apr 2021 09:13 PM PDT
The Briefing
Bitcoin is the Fastest Asset to Reach $1 TrillionThe world is moving forward at an accelerated pace. Historically, it’s taken multiple decades for companies to be worth $1 trillion. For bitcoin, it took just 12 short years to reach such a milestone. To help put things into perspective, here's a look at how long it took America's biggest tech companies to reach the $1 trillion market cap.
Market caps as of April 12, 2021 Extreme Bullish SentimentBitcoin has been subject to widespread commotion in markets. At the start of 2021, the cryptocurrency had a more modest market cap of $500 billion, but has gained more than another $500 billion since. An onslaught of headlines has contributed to extremely bullish investor sentiment, including: 1. CEOs begin to show interest 2. New ETFs on the block 3. Financial institutions finally joining in? On to the Next Trillion?Future projections for the price of bitcoin are garnering more extreme and widening price targets. The accelerated rate of change today has many of the Big Tech companies already inching closer to the next trillion in value. Will bitcoin follow suit? Where does this data come from? Source: coinmarketcap.com The post Bitcoin is the Fastest Asset to Reach a $1 Trillion Market Cap appeared first on Visual Capitalist.  | ||||||||||||||||||||||||||||||||||||||||||||
| What The Data Says About Wealth Inequality Posted: 12 Apr 2021 08:37 PM PDT
The Briefing
What The Data Says About Wealth InequalityWealth inequality has gone through peaks and troughs throughout history. Most recently, in the decade between 2010 and 2020, the top 1% of U.S. households’ portion of wealth has gone from 28.6% to 31.2%. However, when expressed in raw dollars, things begin to look different. Wealth during the same period for the 1% went from approximately $17.5 trillion to $35 trillion. Meanwhile, the total wealth pool rose from $60 trillion to $112 trillion. In other words, all households by category have amassed wealth during the same period, albeit at different rates.
Source: The Federal Reserve Drivers Of Wealth InequalityThe longest bull market in history, which went from March 2009 to February 2020, has been a big driver for the recent divergence. The U.S. composition of wealth for the top 1% of households skews towards corporate equities and mutual funds, of which they collectively own $14 trillion. By contrast, the bottom 50% of households own $0.16 trillion. It's often said a stock market correction is long overdue. Since the top 1% of households clearly have the most skin in the game, if one were to transpire, wealth inequality would likely retract. A Longer Term LookAlthough the inequality of wealth is heavily discussed in today’s climate, the numbers have been higher before. Wealth inequality, measured by the top 1% of U.S. households’ portion of wealth, was at its peak at the start of the 20th century. Back then, a harsh and more concrete class divide with lower rates of upward mobility were common themes.
At its peak in 1910, the top 1% of U.S. households owned well over 40% of all wealth. Major world wars and the Great Depression seemed to be catalysts against this, and the years after WWII brought about some of the lowest levels of inequality seen in the modern era. Wealth inequality has ebbed and flowed throughout history, but it has steadily crept back up in the last few decades. Today, its adverse effects continue to garner the attention of more people—including policy makers who are facing immense pressure to find a solution. Where does this data come from? Source: The Fed The post What The Data Says About Wealth Inequality appeared first on Visual Capitalist.  | ||||||||||||||||||||||||||||||||||||||||||||
| The World’s Top 10 Hedge Fund Managers by Earnings Posted: 12 Apr 2021 11:31 AM PDT
The Briefing
The Top 10 Hedge Fund Managers by EarningsThe world of hedge funds has recently garnered notoriety during the GameStop/WSB debacle, in which an us-versus-them mentality began to brew for smaller investors. In markets, hedge fund managers are considered the big fish in the pond. Not only do they oversee billions of dollars in capital, they often earn some billions as well. Here’s a look at the earnings of the top 10 managers, where yearly earnings range between a high of $1.8 billion and a low of $835 million. Entering the World of BillionsAlthough fees in the wealth management industry have been subject to downward pressure for years, the earnings for the best in the business have been left largely unabated. The historically common fee structure for hedge funds is the two-and-twenty model—that is, 2% of all assets under management (AUM) and 20% of profits based on performance. This makes out to be a pretty penny when considering hedge fund AUMs go higher than $100 billion, like with Ray Dalio’s Bridgewater Associates. Generous fees charged on an exorbitant value of assets is part in why these 10 managers made it to the Forbes 400 list. In fact, the top 10 hedge fund managers combine for $108 billion in net worth:
The top 10 hedge fund managers earn approximately $1.3 billion on average. To put into perspective, this is comparable to the annual revenues of notable companies like Moderna, Cloudflare, Blue Apron, and Upwork.
The World’s Greatest Investors?Hedge fund managers are not your everyday investors. They often engage in sophisticated investment strategies like shorting, that would leave most market participants scratching their heads. Take Jim Simons, who recently retired from the board of Renaissance Technologies, which he founded in 1982. Before being lauded as the world’s greatest investor, he was a codebreaker for the NSA and an award-winning academic. Simons is also known as the “Quant King”, because Renaissance deploys complex mathematical models and statistical analysis to make its investment decisions. Moreover, their flagship Medallion fund has returned 66% per annum since 1998, before counting his additional billions made in fees of course. Where does this data come from? Source: Institutional Investor and Forbes The post The World’s Top 10 Hedge Fund Managers by Earnings appeared first on Visual Capitalist.  |
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