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1. Raymond Dalio

Earned: $3.9 Billion
Firm: Bridgewater Associates
Hedge Fund AUM: $70 billion
Total AUM: $120 billion

Bridgewater Associates founder Raymond Dalio tops this year’s list with a $3.9 billion payday for 2011. The Westport, Conn.-based Bridgewater is the largest hedge fund in the world, and in the past two years, the 63-year-old Dalio has earned $7 billion dollars.

According to reports, Bridgewater is betting on gold in 2012, figuring several countries will intentionally inflate their money supply to help reduce debt. The hedge fund is also looking for strength in emerging markets currencies, as well as lower yields in what it deems to be high-quality government bond markets.

Bridgewater has made about $50 billion for its investors since Dalio founded it in 1975 from his two-bedroom New York apartment.

Source: AR Magazine - Absolute Return + Alpha || Photo: Scott Eells | Bloomberg | Getty Images