Fri, Apr 18, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Billion dollar hedge funds hold $1.3tln of industry assets

Wednesday, March 02, 2011
Opalesque Industry Update - Although the hedge fund industry endured some setbacks in 2010, including a handful of high-profile shutdowns and a government insider trading investigation, the industry continues to rebuild its asset base.

As of January 1, 2011, American hedge funds managed a combined $1.297 trillion. That’s $115 billion, or 10%, more than these funds managed a year ago, according to the latest Billion Dollar Club, AR magazine’s survey of American hedge funds managing $1 billion or more.

Full results are available online at www.absolutereturn-alpha.com.

The rate of industry asset growth last year closely parallels the hedge fund industry’s overall performance. According to the AR Composite Index, hedge funds gained a median 9.15% in 2010. Most of the performance gains– and asset growth – came in the year’s second half.

As of January 1, there were 225 hedge fund firms with assets of $1 billion or more. That’s compared with 213 funds holding a combined total of $1.182 trillion on January 1, 2010, according to the survey, which appears in the March 2011 issue of AR.

Despite the industry’s continuing recovery, hedge funds would need to gain approximately 30%, or $378 billion, in assets to reach the market peak in July 2008, when the biggest 268 American firms managed $1.675 trillion.

“Industry assets haven’t yet reached their peak, but hedge funds continue to recover from the 2008 crisis,” said Amanda Cantrell, managing editor of AR. “The industry is also consolidating, with an entrenched leadership of firms managing more than $5 billion.”

The biggest hedge fund firms keep getting bigger, as the top 10 Billion Dollar Club members all grew in 2010. These firms managed an aggregate $309.27 billion as of January 1, 2011, up 15% from the combined $268.93 billion they controlled on January 1, 2010, and up 27% from the $243.6 billion managed on January 1, 2009.

Bridgewater Associates remains the largest American hedge fund and also posted the biggest asset gain in 2010, increasing its assets by a stunning $15.3 billion for a total of $58.9 billion under management. The strong performance of Bridgewater’s Pure Alpha Fund II, which gained 44.8% during 2010, powered much of this growth.

The number two spot again goes to JPMorgan Asset Management, which managed $45.5 billion as of January 1. That’s $7.1 billion more than the firm managed on January 1, 2010, with growth attributed to inflows into JPMorgan’s fund business.

Paulson & Co. repeats in the number three position with $36 billion in assets under management, $4 billion more than on January 1, 2010.

In dollar terms, the assets of D.E. Shaw Group fell more than any other firm last year. D.E. Shaw lost $9.37 billion, or nearly 40%, of its assets in 2010. The firm now manages $14.23 billion.

American hedge funds control the bulk of industry assets worldwide. By far, New York remains the central hub, accounting for $775.47 billion, or 60%, of assets managed by the Billion Dollar Club. Historically, firms based in the U.S. have managed about 75% of the world’s hedge fund assets.

TOP TEN HEDGE FUNDS IN THE AMERICAS
Firm                                                  AUM ($ billions)
Bridgewater Associates                                     58.9
JPMorgan Asset Management                                  45.5
Paulson & Co.                                              36.0
Soros Fund Management                                      27.9
Och-Ziff Capital Management Group                          27.6
BlackRock                                                  26.6
Baupost Group                                              23.4
Angelo, Gordon & Co.                                       22.0
Farallon Capital Management                                21.5
King Street Capital Management                             19.9     
Source

(press release)

kb

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Banner
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. CTAs could face new challenges in a rising rates environment[more]

    Bailey McCann, Opalesque New York: CTAs have taken a beating performance wise lately, and asset flows reports show that investors aren't sticking around to see how the movie ends. Now, a new white paper from Roy Niederhoffer and Coen Weddepohl notes that as interest rates start to tick back u

  2. Investing – Big hedge funds bought Puerto Rico's junk bonds, Fidelity explores new trading venue amid flash trade concerns, Crisis-era Greek bonds reward early buyers with big effective returns, Cargill unit discloses stake in Freddie preferred[more]

    Big hedge funds bought Puerto Rico's junk bonds From Reuters.com: Several large hedge funds doubled down on Puerto Rico in last month's giant bond sale despite the U.S. territory's financial struggles, the Wall Street Journal reported, citing confidential documents reviewed by the newspa

  3. Opalesque Exclusive: Classic Auto Funds Limited (CAF) launches several car investing funds[more]

    Bailey McCann, Opalesque New York: A new trend in alternative alternatives is emerging - car appreciation funds. Classic Auto Funds Limited (CAF) is the first to market with several funds that make super elite luxury cars into real asset investments. As a result of growing overseas demand couple

  4. Commodities – Popular value fund manager David Iben bets on Russia, gold,[more]

    From Reuters.com: With large bets on Russia and North American gold miners, one of the best performing stock pickers in the wake of the 2008 financial crisis is back with a new fund that reflects his deep aversion to following the crowd. In the Kopernik Global All-Cap Fund, David Iben is follo

  5. Opalesque Exclusive: Pensions, endowments, family offices reconsider life settlement investments[more]

    Bailey McCann, Opalesque New York: Hedge funds were once the largest investors in the life settlement industry, now the industry is seeing more interest from pensions, endowments and family offices directly. Life settlements have always been considered a niche part of the investing landscape, an