SEC Filings Shine Light On Leverage

Apr 13 2012 | 11:16am ET

Leverage is said to be down across the hedge fund industry, but it's still fairly prevalent at the world's biggest firms, according to new data submitted to the Securities and Exchange Commission.

The 50 largest hedge funds reporting to the SEC claimed net assets of $820.8 billion. But the SEC, adding in leverage, puts their "regulatory assets" at more like $1.3 trillion. Another measure also shows big growth that didn't come merely from performance or fundraising: The 50 largest funds registered with the SEC last year, when it was voluntary, have combined assets of $613 billion. This year, the figure is $1.35 trillion.

Those figures aren't exact. For one, the two lists include different firms and the SEC's methods double-count some assets. But the mathematical issues don't always fall on the side of overestimating: Nineteen of the 50 largest firms didn't report net assets, including the biggest, Bridgewater Associates, which reported more than $121 billion in regulatory assets.

Of the 31 that reported both, regulatory assets were more than double net assets.

According to the newest numbers, Citadel Investment Group and Millennium Management are something like nine-times levered, with the former's $12.6 billion in assets ballooning to $115.2 billion, and the latter's $13.5 billion to $119 billion.

Other big firms reported somewhat more modest levels of leverage. D.E. Shaw Group's and SAC Capital Management's regulated assets are about four times as high as their net assets. Renaissance Technologies' assets rise about two-and-a-half fold, while AQR Capital Management's assets balloon by $30 billion to $75.6 billion.


In Depth

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Midtown's Plaza District Fades As Manhattan Office Landscape Shifts

Nov 22 2016 | 6:32pm ET

Lower leasing costs, more efficient office space and the hope of projecting an image...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR