Hedge Funds - US 50 - The HFJ
Hedge Funds - US 50 - The HFJ
Hedge Funds - US 50 - The HFJ
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US50
IN ASSOCIATION WITH
elcome to the third edition of The Hedge Fund Journals US50 published in association with Newedge Prime Brokerage Group. Much like its European equivalent, the Europe50, the US50 is a listing of the 50 largest US single hedge fund managers ranked by assets under management at 31 December 2011.
news from Europe on refinancing. Investors are cognisant of all the macro factors playing on markets, so they are allocating more to macro strategies than to all the others. The surge of investors embracing macro managers was more than enough for Bridgewater to dethrone J.P. Morgan Asset Management, the leader in the previous US50. This time JPMAM had $45 billion in AUM, down from $54 billion in the 2010 survey. Coming in third and fourth place respectively were Och-Ziff Capital Management and BlackRock. OchZiff moves up to third place from fifth with a rise in assets to $29 billion, while BlackRock jumps to fourth from eighth with assets of $28 billion. Residing at fifth place in the US50 is the venerable Soros Fund Management. It has estimated AUM of about $25 billion. With the firm recently converting to a family office and returning funds to investors, Soros FM will be disappearing from the league table of leading managers. Indeed, in early April it was confirmed that Jonathan Soros, the son of founder George Soros, now 82, is setting up a family office of his own. Changing regulations, including registration and asset position disclosures affecting hedge funds in the US, are expected to drive the evolution of new structures for the foreseeable future. Being less burdensome with respect to regulation and disclosure, the family office structure looks certain to enjoy growing appeal for both established wealth creators and investors able to allocate substantial sums of capital.
and access to plentiful liquidity. It shows the way forward is to be a multi-strategy fund. If investors want to avoid funds of funds they can go to the big names and get a lot of options. The top hedge funds have become, shall we say, varied strategy with the name recognition that investors can feel comfortable with. It is not to say, however, that all firms embracing a multi-strategy investment style have performed well or grown assets. Perhaps the most notable among these firms is Paulson & Co. Though John Paulson profited mightily from the US sub-prime implosion, a raft of new funds and new strategies in existing funds have endured an extremely chequered run. The result is that Paulsons assets fell to $22.6 billion from $32 billion in 2010, lowering its ranking to seventh from third. In a similar vein, DE Shaw Group has lost substantial ground in terms of AUM even though the firm has introduced more advantageous terms on some funds for its institutional investor client base.
Since the second edition of the US50 was published in March 2010 the hedge fund industry has recovered further in terms of assets under management, returning to just over the $2 trillion level, according to data from Hedge Fund Research. The third edition of the US50 comes after a period of initially strong investment performance followed by a more volatile market environment, punctuated by brief periods of gains and sudden investment losses. Many of the US50 from two years ago are still present in the third edition, although the relative ranking of many has certainly changed. On a comparative basis, most hedge fund firms have gained assets over the past two years though there are a number that have shrunk notably. Sometimes this is due to investors withdrawing cash after a period of fund drawdowns, other times it is because a particular strategy may have fallen out of favour. Conversely, the attractions of a strategy can certainly help to attract investors.
US50
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Bridgewater Associates
Principal Fund(s) Pure Alpha strategy Pure Alpha Major Markets strategy All Weather 12% strategy Size ($b) $57.1 bn $14.2 bn $4.8 bn Fund Manager(s) Ray Dalio, Bob Prince, Greg Jensen Strategy/style Global Macro Founders/Principals Ray Dalio Bob Prince Greg Jensen
Location Westport, CT
BlackRock
Principal Fund(s) Not disclosed Size ($b) Not disclosed Fund Manager(s) Not disclosed Strategy/style Diversified Fixed Income European Opportunities Credit Emerging Europe Natural Resources UK Emerging Companies UK Equity Founders/Principals Larry Fink
US50
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Baupost Group
Principal Fund(s) Not disclosed Size ($b) Not disclosed Fund Manager(s) Not disclosed Strategy/style Equity Value Founders/Principals Seth Klarman
Location Boston, MA
Paulson & Co
Principal Fund(s) Paulson Advantage Funds Paulson Credit Opportunities Funds Paulson Partners Funds Paulson Recovery Funds Paulson Gold Fund Size ($b) Not disclosed Fund Manager(s) John Paulson Strategy/style Not disclosed Founders/Principals John Paulson
Renaissance Technologies
Principal Fund(s) Renaissance Institutional Diversified Alpha Fund Renaissance Institutional Equities Fund Renaissance Institutional Futures Fund Renaissance Medallion Fund Size ($b) Not disclosed Fund Manager(s) Not disclosed Strategy/style Statistical Arbitrage Long/Short Equity Equity Market Neutral Founders/Principals James Simons
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DE Shaw Group
Principal Fund(s) D. E. Shaw Multi-Asset Fund D. E. Shaw Terella Fund D.E. Shaw Composite Fund D.E. Shaw Heliant Fund D.E. Shaw Oculus Fund Size ($b) Not disclosed Fund Manager(s) Not disclosed Strategy/style Multi-Strategy Statistical Arbitrage Event Driven Macro Fixed Income Arbitrage Founders/Principals David E Shaw
US50
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Moore Capital
Principal Fund(s) Moore Emerging Market Fund Moore Global Investors Fund Moore Macro Managers Fund Size ($b) Not disclosed Fund Manager(s) Louis Bacon Greg Coffey Strategy/style Global Macro Emerging Markets Founders/Principals Louis Bacon
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Location Greenwich, CT *Hedge Fund assets have been scaled to 10% volatility
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Location Boston, MA
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Location Greenwich, CT
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US50
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Millennium Partners
Principal Fund(s) Millennium International / USA Size ($b) Not disclosed Fund Manager(s) Not disclosed Strategy/style Multi-Strategy Founders/Principals Israel Englander
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Avenue Capital
Principal Fund(s) US Distressed Strategy Europe Distressed Strategy Asia Distressed Strategy Size ($b) $5.9 bn $4.1 bn $1.8 bn Fund Manager(s) Rob Symington Richard Furst Mark R. Harris Strategy/style Distressed Founders/Principals Marc Lasry Sonia E. Gardner
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Appaloosa Management
Principal Fund(s) Appaloosa Investment I Palomino Fund Thoroughbred Master Fund Thoroughbred Fund LP Size ($b) Not disclosed Fund Manager(s) Not disclosed Strategy/style Distressed Event Driven Founders/Principals David Tepper
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Location Stamford, CT
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Wellington Management
Principal Fund(s) Archipelago Partners Bay Pond Partners Iguazu Partners Pagosa Partners Placer Creek Partners Size ($b) Not disclosed Fund Manager(s) Not disclosed Strategy/style Multi-Strategy Long/Short Equity Commodities Emerging Markets Founders/Principals Perry Traquina
Location Boston, MA
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Citadel LLC
Principal Fund(s) Citadel Kensington Global Strategies Fund Ltd. Citadel Wellington LLC Size ($b) Not disclosed Fund Manager(s) Not disclosed Strategy/style Multi-Strategy Founders/Principals Ken Griffin
Location Chicago, IL
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Location Boston, MA
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Location Greenwich, CT
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Maverick Capital
Principal Fund(s) Maverick Fund Maverick Levered Fund Maverick Long Fund Maverick Neutral Fund Maverick Neutral Levered Fund Size ($b) Not disclosed Fund Manager(s) Lee Ainslie III Strategy/style Long/Short Equity Founders/Principals Lee Ainslie III
Location Dallas, TX
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ESL Investments
Principal Fund(s) ESL Partners Size ($b) Not disclosed Fund Manager(s) Not disclosed Strategy/style Distressed Founders/Principals Edward Lampet William Crowley
Location Greenwich, CT
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Caxton Associates LP
Principal Fund(s) Caxton Global Investments A.R.T. International Investors Caxton HAWK (Diversified) Wadhwani Asset Management Size ($b) $7.1 bn Fund Manager(s) Andrew E. Law Aaron Sosnick Jeffrey Enslin Sushil Wadhwani Strategy/style Global Macro Statistical Arbitrage Quantitative Macro Quantitative Macro Founders/Principals Bruce Kovner (retired) Peter D'Angelo (retired) Andrew E. Law
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Location Boston, MA
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Location Boston, MA
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Location Atlanta, GA
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Magnetar Capital
Principal Fund(s) Not disclosed Size ($b) Not disclosed Fund Manager(s) Not disclosed Strategy/style Multi-Strategy Event Driven Fixed Income Energy Founders/Principals Alec Litowitz Ross Laser David Snyderman
Location Evanston, IL
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Location Boston, MA
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US50
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Lone Pine
Principal Fund(s) Not disclosed Size ($b) Not disclosed Fund Manager(s) Not disclosed Strategy/style Long/Short Equity Founders/Principals Stephen Mandel
Location Greenwich, CT
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Location Rowayton, CT
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Greenlight Capital
Principal Fund(s) Greenlight Capital Greenlight Capital Offshore Greenlight Capital Qualified Size ($b) Not disclosed Fund Manager(s) Not disclosed Strategy/style Long/Short Equity Distressed Founders/Principals David Einhorn
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