Hedge fund manager Sir Chris Hohn doubles profits, bags £57m

The Children’s Investment Fund Management recorded pre-tax profits of £137.5m in the year to February

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The Independent Online

Hedge fund investor Sir Chris Hohn walked away with £57m last year after his investment group The Children’s Investment (TCI)Fund Management more than doubled profits.

The $8bn activist fund, founded by Hohn in 2003, boosted pre-tax profits to £137.5m for the year ending 28 February 2015, up from £68.7m in the prior year, according to accounts.

It was the best year since 2008 for the fund, which made an eight per cent return in 2014 and took a big stake in Spanish airport operator Aena in early 2015.

Hohn, who was involved in a highly publicised divorce case with his ex-wife Jamie Cooper-Hohn last year, also ended his relationship with the Children’s Investment Fund Foundation (CIFF), the charity founded by his ex-wife.

CIFF UK Trading, a subsidiary of the foundation, received no money from the firm this year compared to £4.8m in 2014 and £14.3m in 2013.

Hohn has since set up another charity, the CH Foundation, which has donated nearly £1.8m, including £1.2m gift to Justice and Care UK, according to accounts filed in June.

Hohn, who declined to comment last night, has also overhauled bonus rules at the company to make it easier clawback pay rewards.

TCI switched its regulatory status in March to comply with fresh rules laid down by the Financial Conduct Authority forcing hedge funds to set out a remuneration policy for the first time.

 

The company’s governing body has subsequently been granted authority to snatch back bumper payouts if the hedge fund blows up in future. 

The stricter penalties are part of a wider move by regulators to bring the hedge fund and private equity industry in line with pay policies in the mainstream financial services sector.

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