In this article, we will take a look at 15 of the biggest hedge funds in the USA. If you want to see more of the biggest hedge funds in the USA, go directly to 5 Biggest Hedge Funds in USA.
Hedge funds are pooled funds that trade in relatively liquid assets and that can use sophisticated tools to try to improve their performance on a risk adjusted basis. Generally only sophisticated investors such as high net worth individuals and institutions can invest in hedge funds.
Different hedge funds have different strategies of investing. Some hedge funds are activists and try to get companies to change their strategy to unlock value. Other hedge funds are more value oriented and buy deep value stocks. Yet other hedge funds will try to use an algorithmic approach to investing and try to create very sophisticated computer models that tell them when to buy certain stocks and when to sell certain stocks. Because many hedge funds hedge their investments, they may not outperform the market at times because they take theoretically less risk.
New York Stock Exchange
Image: flickr.com
History of Hedge Funds
The first hedge fund began when Alfred Winslow Jones created A. W. Jones & Co as a partnership between Jones and four friends. Jones’ fund invested $100,000 in stocks and used debt along with long and short positions to try to beat the market. Jones also charged a manager’s fee of 20% of the profits, something that is still practiced even today among many funds.
In 1968, the number of hedge funds grew to 140 and the field expanded even further given the success of hedge fund managers George Soros and Julian Robertson in the early 1980s. Given the more recognition, more high net worth individuals were interested in investing.
The industry grew even further in the 90’s given the bull market as the assets managed by hedge funds rose form $38.9 billion in 1990 to $536.9 billion in 2001.
As of 2022, the hedge fund industry is even bigger than what it was in 2001. According to Barclay Hedge, the total assets under management of hedge funds was $4.87 trillion in the second quarter of 2022. In terms of the different types of hedge funds, fixed income hedge funds had the most collective AUM at $917.9 billion followed by balanced hedge funds which invest in stocks & bonds with cumulative AUM of $768.9 billion.
Pixabay/Public domain
2022
In terms of 2022, the markets have been pretty difficult given that the Federal Reserve has increased interest rates substantially.
Given that inflation has increased substantially, the Federal Reserve has committed to fight the inflation increase. Federal Reserve Chairman Jerome H. Powell said in August 26, 2022,
The Federal Open Market Committee’s (FOMC) overarching focus right now is to bring inflation back down to our 2 percent goal. Price stability is the responsibility of the Federal Reserve and serves as the bedrock of our economy. Without price stability, the economy does not work for anyone. In particular, without price stability, we will not achieve a sustained period of strong labor market conditions that benefit all. The burdens of high inflation fall heaviest on those who are least able to bear them. Restoring price stability will take some time and requires using our tools forcefully to bring demand and supply into better balance. Reducing inflation is likely to require a sustained period of below-trend growth.
Given the increase in rates, the S&P 500 is down 22% year to date and many hedge funds have not done well this year either although some of the leading hedge funds still have great long term track records.
benjamin-suter-Issa_lRkr0o-unsplash
Methodology
For our list of 15 Biggest Hedge Funds in USA, we took the top 15 hedge funds by AUM based in the United States from the Top 100 Hedge Fund Manager Managers by Managed AUM list by SWFI. We then reranked the top 15 using publicly available AUM data. Although this list may not be complete, it includes many of the biggest hedge funds in the USA.
Assets Under Management: $5 billion
Haidar Capital Management is a hedge fund based in New York that takes a discretionary global macro institutional investment approach. According to the fund, it ‘continuously seeks to adapt to changing financial market conditions and bases its positioning on the firm’s global view of economic data, geopolitical risks, and fiscal and monetary policies.’ Founded in 1997, Haidar Capital Management has $5 billion in assets under management.
Assets Under Management: $8 billion
Garda Capital Partners is a hedge fund with headquarters in Minneapolis with over $8 billion in institutional assets as of September 30, 2022. In terms of its strategy, Garda Capital Partners’ fixed income relative value strategy ‘captures opportunities in global interest rate disparities and sovereign debt instruments across developed markets.’ The fund, which has a 18 year track record through many market cycles, ranks #15 on our list of 15 Biggest Hedge Funds in USA.
Assets Under Management: $14 billion
ExodusPoint Capital Management is a multi-strategy, global hedge fund firm founded in 2018 that’s based in New York. When it launched, ExodusPoint Capital Management was the largest hedge fund launch in history with $8 billion. Recently according to Bloomberg, ExodusPoint is benefiting from being a multi-strategy firm as it is ‘snapping up hedge fund talent as investors pour money into them and shift capital away from single-strategy investment firms.’ As of September 2021, ExodusPoint Capital Management had $14 billion in assets under management. According to Bloomberg, ExodusPoint was also up 5% through August of this year.
Assets Under Management: $14.4 billion
Lighthouse Investment Partners is a global investment firm based in New York that offers hedge fund solutions that tries to generated uncorrelated risk‑adjusted returns for investors. According to the company, Lighthouse Investment Partners has $14.4 billion in total assets as of September 30, 2022. Lighthouse Investment Partners also has 26 years of investment experience, 226 employees, and 83 investment professionals.
Assets Under Management: $15 billion
Element Capital Management, headquartered in New York, is one of the world’s largest macro hedge funds. The fund, run by Jeffrey Talpins, had a great run for 16 years after it was founded with average annual gains of over 18%. Due to strong demand, Element Capital Management increased its performance fee to 40% from the previous 25% in 2019. Like many other investors, however, Element Capital Management was negatively affected by the bond market changes in October of 2021 and the fund fell around 9% in 2021.
Assets Under Management: $15.7 billion
Balyasny Asset Management is a hedge fund based in Chicago that invests using a variety of strategies including equities long/short, macro, and commodities. In addition to investing in public companies, Balyasny Asset Management has also invested in several leading private companies such as Databricks and Klarna. As of May 2022, Balyasny Asset Management had $15.7 billion in assets under management up from $11 billion in 2018. The firm also has 1,100 employees including 470 investment professionals.
Assets Under Management: $37 billion
Viking Global Investors is a hedge fund based in Greenwich, Connecticut that has a strong track record. In terms of its investment process, Viking Global Investors evaluates a wide spectrum of investment opportunities globally and the fund uses research intensive investment processes to invest in the attractive ideas. Among other things, the fund uses its sector and company specific knowledge to assess the strength of a company’s management team, understand near and medium term trends, evaluate long term industry trends, and determine valuations. As of 9/30/22, Viking Global Investors manages over $37 billion in capital.
Assets Under Management: $42 billion
Adage Capital Management is a hedge fund based in Massachusetts that is managed by Phillip Gross and Robert Atchinson. According to Crunchbase, Adage Capital Management focuses on managing S&P 500 assets and it also does early stage venture, late stage venture and private equity investing. In terms of its clients, Adage Capital Management helps manage money for endowments and foundations and other investors. With an AUM of $42 billion, Adage Capital Management ranks #8 on our list of 15 Biggest Hedge Funds in USA.
Assets Under Management: $55.7 billion
Elliott Management Corporation is a Florida headquartered fund that provides portfolio management and consulting for pensions, sovereign wealth funds, endowments, high net worth individuals and more. As of June 30, 2022, Elliott Management Corporation had $55.7 billion in assets under management and also a staff of 499 people. In terms of its strategy, Elliott Management Corporation, “trades in securities across the capital structure and often will take a leading role in event-driven situations to create value or manage risk.” In the financial markets, Elliott Management’s fund manager Billionaire Paul Singer is known for being an activist whose fund can buy entire companies or take smaller positions in companies and ask for changes.
Assets Under Management: $56 Billion
Millennium Management, headquartered in New York, is a leading hedge fund with $56 billion in assets under management. In 2022, Millennium Management said it will be returning $15 billion to investors at the end of 2022 after the fund also returned $15 billion in 2021. While Millennium Management has returned the capital, the fund’s clients have the option of re-investing the capital in a special share class that allows them to withdraw 5% in a quarter. Millennium Management is doing so to find ways to extend its retained capital so it can attract investment professionals and also have more flexibility in terms of making internal investments. In terms of its performance, Millennium Management’s flagship fund rose 9.7% through September.
Click to continue reading and see 5 Biggest Hedge Funds in USA.
Suggested articles:
10 Largest Fast Food Chains In The World
10 Biggest Car Companies in the World
Most Valuable Companies in History
Disclosure: None. 15 Biggest Hedge Funds in USA is originally published on Insider Monkey.
Related Quotes
More than 300,000 U.S. accountants and auditors have left their jobs in the past two years, a 17% decline, and the dwindling number of college students coming into the field can’t fill the gap. Young professionals in the 25- to 34-year-old range and midcareer professionals between the ages of 45 and 54 also departed in high numbers starting in 2019, according to the Bureau of Labor Statistics. The huge gap between companies that need accountants and trained professionals has led to salary bumps and more temporary workers joining the sector.
In this article, we will take a look at the 11 best buy-the-dip stocks to buy now. If you want to see more stocks in this selection, go to the 5 Best Buy-the-Dip Stocks To Buy Now. The leading US market indices are on their way to recording the first annual loss since 2018 and the […]
In this article, we discuss the 12 cheap value stocks to buy according to Warren Buffett. If you want to skip our discussion, go directly to 5 Cheap Value Stocks to Buy According to Warren Buffett. Warren Buffett and His Investment Strategy Warren Buffett is one of the most successful investors in the world and […]
Dozens of changes are coming to America's retirement landscape.
The FDA accepts Kala Pharmaceuticals' (KALA) investigational new drug application for pipeline candidate KPI-012 for treating persistent corneal epithelial defect. Stock up.
In an email sent to staff on Wednesday and reviewed by Reuters, Musk said he believes that long term, Tesla will be the most valuable company on earth. He also urged employees to ramp up deliveries at the end of this quarter, after the automaker offered discounts on its vehicles in the United States and China.
The stock market seems bound and determined to leave investors with bad memories of 2022, with major market benchmarks once again failing to deliver even a tiny bounce as the end of the year approaches. Losses for the Dow Jones Industrial Average (DJINDICES: ^DJI), Nasdaq Composite (NASDAQINDEX: ^IXIC), and S&P 500 (SNPINDEX: ^GSPC) all topped 1% as investors continue worrying about whether the macroeconomic picture in 2023 will remain just as cloudy as it is today. For investors looking for more immediate recognition of their achievements, though, TG Therapeutics (NASDAQ: TGTX) saw its stock move higher after getting good news from the U.S. Food and Drug Administration.
Sam Bankman-Fried is expected to enter a plea deal next week to fraud charges connected to the collapse of cryptocurrency FTX Reuters reported.
Tesla investors already lost more than $700 billion on the stock this year. How much more can this S&P 500 stock drop?
In this article, we will take a look at the 12 best 52-week high stocks to buy now. If you want to see more stocks in this selection, go to the 5 Best 52-Week High Stocks To Buy Now. The equity markets have been taking a beating this year as the Dow Jones Industrial Average […]
With the stock market in the red for the third straight week and recession warnings ramping up, markets are more volatile than ever. Despite the Federal Reserve’s seven consecutive rate hikes this year, November inflation data were slightly hotter than expected, rejuvenating investors’ fears. “The economic numbers announced today highlight the difficulty for investors today, where weak numbers bring recession fears and strong numbers bring Fed fear,” said Louis Navellier, founder and CEO of grow
For those willing to hear a different — anti-group think — view, Kass has plenty of bets for what could happen over the next 12 months, including Elon Musk saving Twitter at the expense of Tesla , a shock Apple merger, a major plummet in Bitcoin's value and those predicted jumps in gold and oil. Of course, Kass had some predictions, especially political ones, that didn't pan out.
If the stock closes lower today, it will mark Apple's ninth decline in the past 10 sessions. IPhone reports also raise a bit of concern amid Apple's busiest quarter, while unrelenting selling pressure in tech is bound to weigh on the largest company in the U.S. While Apple has held up the best among FAANG stocks when measured from the one-year highs, Apple stock has performed the worst in the group over the past month, down over 14%.
Oil stocks dominate this list of today's fastest-growing stocks, all eyeing 100%-1,220% EPS gains this year.
“I think you occasionally get a turning of the investment and economic age, and we're at one of those now after over a decade of near-zero interest rates,” said George Ball, chairman of Sanders Morris Harris.
Yahoo Finance Live examines Apple shares amid concerns emerging around delays in the iPhone 14's production from Chinese manufacturers.
Beneficiaries of 529 plans will be able to roll over funds from their 529 accounts to Roth IRAs tax and penalty free.
The Roth IRA has been called "the Swiss Army knife" of personal finance because of its flexibility and the tax-free status of its earnings. That's the reason so many retiring workers move to roll their workplace 401(k) accounts into a … Continue reading → The post Doing a Roth Rollover? Beware the 5-Year Rule appeared first on SmartAsset Blog.
I'll give you my bet for the year, but let me warn you that no good investor just decides on Jan. 1 to hold a stock for a year with no safeguards. This is what they do instead.
(Bloomberg) — Marko Kolanovic and John Stoltzfus, two of the loudest stock bulls on all of Wall Street, were convinced of one thing at the outset of 2022: The Federal Reserve would go slow, very slow, with its plan to lift interest rates. Nevermind that inflation had already soared to its highest level in four decades. The rate increases, they said, would come in increments so small that financial markets would barely feel them.Most Read from BloombergMilan Reports 50% of Passengers on China Fl
