Biggest Hedge Funds Post Slow Growth

Sep 9 2008 | 1:09pm ET

For the first time in recent memory, the biggest hedge funds in the world are not getting bigger.

Some of the world’s largest hedge funds actually saw their assets under management fall in the first six months of the year, leading to a shakeup at the top, according to Absolute Return magazine. Since January, 35% of the 268 hedge fund managers with more than $1 billion in assets have lost assets; overall, the billion-dollar club grew by just 4.3%, the smallest increase in the biannual survey’s six-year history, and less than half the 10% growth posted in the second half of last year, itself the smallest growth rate at the time.

“It has been a tough year for just about everyone, except the few who correctly anticipated that the financial crisis would continue to deepen—and thus bet that financial stocks would continue to fall and that the credit markets would fail to recover,” Michelle Celarier, editor of Absolute Return, said.

JPMorgan Asset Management remained the biggest hedge fund in the world with $48.1 billion in assets, a 7.6% increase. But that is still 14.4% less than the $56.2 billion the firm was managing one year ago. Meanwhile, Connecticut’s Bridgewater Associates consolidated its hold on second place as its assets soared by 48.6% to $43.5 billion.

January’s third- and fourth-place firms fell out of the top five due to a decline in their assets. Long Island-based Renaissance Technologies’ assets fell by 14.7% to $29 billion, and San Francisco-based Farallon Capital Management shrunk by 8.3% and now manages $33 billion.

Taking their place in the top five are D.E. Shaw Group, which boosted its assets by 15.1% to $37.1 billion, and last year’s headliner Paulson & Co., which continued its ascent with a 20.1% increase in assets to $34.94 billion. The firm ranked just 69th in the Absolute Return survey last June.

Och-Ziff Capital Management held on to the fifth spot in the rankings; its assets were essentially flat at $33.3 billion.

Other notable movers in the top-10 included Goldman Sachs Asset Management—the second-largest hedge fund firm just a year ago—which saw its assets fall another 7.9% to $26.9 billion, and activist shop Harbinger Capital Partners, which saw its assets soar 33.9% to $24 billion, earning a place in the top 10 for the first time. Six months ago, it ranked 16th.

The top-10 firms as a whole grew by just 5.3% to $337 billion. All told, the world’s billion-dollar hedge funds managed $1.68 trillion at the end of June.


In Depth

Q&A: Neil Azous Talks Global Macro Investing

Nov 24 2014 | 12:41pm ET

Neil Azous is the founder and managing member of Rareview Macro, an advisory firm...

Lifestyle

Griffin Selling Chicago Apartment

Nov 26 2014 | 11:40am ET

Citadel Investment Group’s Kenneth Griffin is making clear to his estranged wife...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.