By Abijah Keru on March 28 2014
Hedge funds have become bigger and more concentrated globally than they were a decade ago. They play an important role in financial markets by providing liquidity and helping investors manage risks. Hundreds of firms have emerged in the last few years, but not all have had a successful run. Below are the 10 largest hedge funds in the world, which control the lion’s share in assets under management.
1. BlackRock Advisors: $4.3 Trillion
The New York based investment management fund was founded in 1988 by Robert S. Kapito and Larry Fink. BlackRock Advisors launches and manages fixed income, equity, and hedge funds for their clients. The firm manages $4.3 trillion in assets under management making it the world’s largest asset manager.
2. J.P. Morgan Asset Management: $1.5 Trillion
The asset Management firm is a division of JPMorgan Chase &Co. The firm has built a solid reputation since its inception over a century ago. It manages an array of assets including cash liquidity, real estate, and private equity. The firm comes in second with $1.5 trillion in assets under management.
3. Bridgewater Associates: $150 Billion
Ray Dalio has been knocking out strong returns ever since he founded Bridgewater Associates in 1975. The fund has an array of clients including public pension funds, endowments, and charitable foundations. It has been running for the last 39 years and has $150 Billion in assets under management. The firm averaged 40% in returns from 1999-2009 trouncing other hedge funds to become the largest in the world in 2012.
4. Man Group: $54.1 Billion
Man group investment cuts as on one of the oldest hedge funds. Founded in 1783, it has evolved into a powerhouse managing an impressive $54.1 billion. The fund has its headquarters in London, United Kingdom and is under the management of Jon Aisbitt and Emmanuel Roman.
5. Och-Ziff Capital Management Group: $42.3 Billion
Founded by Daniel Och in 1994, Och-Ziff Capital Management Group had amassed $42.3 billion in assets under management as of March 2014. The firm uses a multi-geographical approach with offices in Dubai, Beijing, Hongkong, London, and New York. The firm primarily provides its services to institutional investors which Include pension funds, corporations and funds-of-funds.
6. Brevan Howard Asset Management: $36.6 Billion
The European hedge fund was founded in London in 2002 by a team headed by Alan Howard a former head of proprietary trade at Credit Suisse. It invests in foreign exchange, public equity, debt, and derivative markets of emerging commodities. The firm has grown exponentially with offices in Washington, Hong Kong, Tel Aviv and Geneva. In February 2014, the firm announced it would be closing its $2 billion Emerging Markets Strategies fund after it lost 15% in 2013.
7. Highbridge Capital Management: $25 Billion
High bridge Capital Management was founded in 1992 by childhood friends Henry Swieca and Glenn Dubin. The firm specializes in providing services to pooled investment vehicles, investment companies and high net worth individuals. The New York based firm has additional offices in Boston, United Kingdom, Dallas, Hong Kong, and Tokyo.
8. BlueCrest Capital Management: $25 Billion
The firm, which is based in Geneva and London was founded by Michael Platt and Williams Reeves. The firm tripled in assets under management between 2009 and 2012 making it one of the most successful hedge funds firms since its inception in 2000.
9. Winton Capital Management: $24 Billion
Founded in 1997 by David Harding, Winton began trading in a small office with only $2 million in assets under management. 17 years later, it has evolved becoming a global investment management business. The firm has its headquarters in London but with offices in Hongkong, Zurich, and Oxford. As of February 2014, the firm had $24 billion in assets under management.
10. Paulson & Co: $22.8 Billion
John Paulson’s Paulson & Co. was founded in New York in 1994. The fund specializes in merger arbitrage, event arbitrage, and distressed securities. Paulson &Co. was named the hedge fund of the year at the 2013 Absolute Return Awards after its impressive returns in 2013.
Abijah is a journalism student who has a great passion for writing. She enjoys penning down her thoughts and sharing them with the world.