Top Hedge Funds
The hedge fund industry is the fast mover and fast player in the financial world, with traders often using a diverse set of strategies to target huge returns for their clients. These strategies are sometimes significantly riskier than the ones relied on by either investment banks or traditional asset management firms – but they come with the benefit of larger returns. Consequently, hedge funds have come to count themselves among some of the biggest entities in the world that have portfolios larger than the balance sheets of several central banks.
Top Hedge Funds
As a result, hedge funds invariably carry higher risk than traditional investments. They are not subject to the same regulations as mutual funds and may not be required to file reports with the U.S. Securities and Exchange Commission (SEC). Collectively, the world’s 15,000 hedge funds manage around $4.5 trillion in assets for their clients, weathering economic storms and world events to ensure returns. This visual breaks down the world’s biggest hedge funds in terms of assets under management using data from Pensions & Investments.
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Table of Contents
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The Top 5 Hedge Funds
The world’s biggest hedge fund by a mile is Ray Dalio’s Bridgewater Associates. At the time of this ranking, Bridgewater managed over $126 billion in assets for clients as wide ranging as university endowment funds, charities, and foreign country’s central banks.
Here’s a closer look at the ranking:
|Rank||Hedge Fund||Assets (millions USD)||Headquarters|
Overall, 70% of hedge funds are headquartered in North America, with many of the world’s largest based in the United States, specifically.
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Hedge funds are essentially pooled investments pulled together by the fund’s clients. The managers then utilize a variety of strategies to produce returns on investments, buying and selling assets such as stocks, commodities, real estate, bonds, and so on. The fund itself makes money by charging fees to their clients and taking a percentage of the profits earned on trading.
Hedge fund growth can be uncorrelated with the broader market, and is not necessarily an indicator of the overall economy. However, analyzing the strategies used by hedge funds and their performance can often provide useful insight for investors.
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Here are some Hedge funds given:-
Bridgewater Associates is based in Westport, Conn., and provides services to pension funds, foreign governments, central banks, university endowments, charitable foundations, and other institutional investors.6 Co-chair and co-chief investment officer Ray Dalio founded the firm in 1975 from his two-bedroom New York apartment.
The company offers four main funds:
- Pure Alpha, which focuses on active investment strategy
- Pure Alpha Major Markets, which targets a subset of opportunities that the Pure Alpha fund invests in
- All Weather, which uses an asset allocation strategy
- Optimal Portfolio, which combines aspects of the All Weather fund with active management
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This British hedge fund has more than 230 years of trading experience. It started in 1784 as an exclusive supplier of rum to the Royal Navy, later getting into the sugar, coffee and cocoa trading business. As of December 31, 2020, Man Group had $123.6 billion in assets under management.
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Renaissance Technologies is a New York-based quantitative hedge fund that uses mathematical and statistical methods to uncover technical indicators that drive its automated trading strategies. Renaissance applies these strategies to U.S. and international equities, debt instruments, futures contracts, forward contracts and foreign exchange. As of June 3, 2021, the fund had $130 billion under management. Mathematician Jim Simons founded Renaissance Technologies in 1982. Forbes lists Simons as the 68th wealthiest person in the world as of Jan. 13, 2021, worth $23.5 billion. Mathematician Peter Brown is the current chief executive.
Millennium Management is based in New York and was founded in 1989. The company offers discretionary advisory services to private funds. As of December 31, 2019, Millennium had $42 billion under management. The company is lead by Chair Israel Englander, who founded Millennium with $35 million in capital following a career as a floor broker, trader, and options specialist on the American Stock Exchange.
Citadel Advisors is based in Chicago and focuses on equities, fixed income and macro, commodities, credit and quantitative strategies. As of March 31, 2021, Citadel had $33.1 billion in assets under management. In 1987, founder Kenneth Griffin began trading from his dorm room as a 19-year-old sophomore at Harvard University. He founded Citadel in 1990.
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