Biggest Hedge Funds in The World
What do the world's best hedge funds have in common? In many cases, the answers are surprisingly few. Some lesser-known investment firms that tend to restrict access to institutional investors and wealthy individuals specialize in betting on macroeconomic trends. Quantitative hedge funds, on the other hand, use sophisticated computer models to trade the market based on historical data and sophisticated algorithms. Still, others engage in activist investments, gain significant positions in companies, and incite management to take concrete steps that benefit shareholders.
In a world of fee-free exchange-traded and index funds and low expense ratios, hedge funds often charge clients an annual fee of 2% of assets under management and 20% of returns reaching a certain threshold. Overall, hedge funds as a whole regularly underperform the returns they could get from buying an S&P 500 index fund and forgetting about it, so these fees aren't justified by the returns they generate. However, there are some notable exceptions in this area, and the best hedge funds in the world are large, proven machines that beat the market.
Let me tell you about the top 10 hedge funds of all time! That's right, the top 10 Hedge funds of all time. I will talk about who started the fund, where the fund is now, and what the AUM of each fund is. Hedge funds are one of the most profitable vehicles in the world!
Top 10 Hedge Funds, Bottom to Top
10. Davidson Kempner Capital
Founded by Marvin Davidson Its headquarters are in New York. Specializes in hardcore investing, event stocks, and more. The company manages more than $35 billion in assets.
9. Citadel
It was founded in 1990, is headed by Ken Griffin, and is one of the largest market makers in the stock, interest-rate swap, and options markets. Its assets under management are $38 million.
8. BlackRock
Headquartered in New York and founded by Larry Fink, it is a global investment firm in 30 different countries that manages $40 billion in hedge funds with total assets under management of over 9.5 trillion USD.
7. Millennium Management
It was founded by Israel Englander in 1989 with $54 billion in assets under management. Only invest in the stock and bond markets. It is headquartered in New York but has offices around the world, including London and Tokyo.
6. Two Sigma Investments
Founded in 2001 by David Siegel, John Overdeck, and Mark Pickard, the company has $58 billion in assets under management and uses mathematics to trade. It has more than 1600 employees.
5. Elliot Management
Elliot Management was headed by Paul Singer and was founded in 1977. It has $70 billion in assets under management and only 472 employees. There's lots of money to go around.
4. Renaissance Technologies
The company was founded by Howard Morgan and Jim Simons in 1982, Total assets under management are up to 130 billion USD and are only open to founders, top employees, their families, and very close friends. The company charges a management fee of 5% and 45% of profits. But they also deliver a 66% return to their investors.
3. Man Group
The company has $135 billion under management and is headquartered in the UK. The company was founded in 1783 and is the world's largest publicly traded hedge fund.
2. AQR Capital Management
Founded in 1998, the company manages $143 billion in assets. It is known for its alternative investment strategies; they were the first to launch the first fixed-income investment fund in the United States.
1. Bridgewater Associates
The world's largest hedge fund company, led by Ray Dalio and founded in 1975, has over $140 billion in assets under management. This was the fastest-growing fund from 2000 to 2005, and on top of that, you must have a net worth of $5 billion with a minimum investment commitment of $100 million.