Veteran hedge fund George Soros, who announced at the World Economic Forum last week in Davos that he was stepping back from the running his own family fund, came in at number one.
His Quantum Endowment Fund, now managed by chief investment officer Scott Bessent, made gains of $2.3 billion last year, according to LCH Investments, but having posting gains of almost $42 billion since its launch in 1973, the fund retains the top spot.
John Paulson maintained third place in the rankings, but posted a loss of $1.9 billion in 2014, the greatest loss out of all 20 named managers.
David Tepper, who runs $20-billion distressed debt hedge fund Appaloosa Management, also stayed put in fifth place, with gains of $500 million in 2014.
Sopher, who compiled the data following contact with the managers themselves, analysis of audited and management reports, internal estimates and other confidential sources, said hedge funds remained an attractive option for investors, as interest rates remain at historic lows.
"Interest rates and prospective returns have come down in all the main asset classes. Hedge funds had net inflows of $136 billion in 2014, showing that investors continue to find the prospects of returns from hedge funds relatively attractive," he added.
By CNBC's Jenny Cosgrave; Lawrence Delevingne contributed to this report