David Tepper, head of Short Hills, N.J.-based Appaloosa Management, earned an estimated $4 billion last year, making him 2009’s highest-paid hedge-fund manager, according to a report published by AR magazine. George Soros, chairman of New York-based Soros Fund Management, ranked second with $3.3 billion, followed by James Simons of Renaissance Technologies in East Setauket, N.Y., who made $2.5 billion. Last year set a record for the 25 top-earning managers, who collectively made $25 billion, according to the magazine. That’s more than double the $11.6 billion the top 25 made in 2008 and about $3 billion more than the previous record of $22.3 billion set in 2007, the magazine said. Hedge funds climbed an average of 20 percent last year, the most since 1999, according to Chicago-based Hedge Fund Research. The returns came as stock and bond markets rebounded from 2008’s credit crisis. Following Simons were John Paulson, Paulson & Co., $2.3 billion; Steve Cohen, SAC Capital Advisors, $1.4 billion; Carl Icahn, Icahn Capital, $1.3 billion; Edward Lampert, ESL Investments, $1.3 billion; Ken Griffin, Citadel Investment, $900 million; John Arnold, Centaurus Advisors, $900 million; and Philip Falcone, Harbinger Capital, $825 million. David Tepper Appaloosa Management […]