Investors seeking high returns with no concern for the risk involved have the perfect investment channel: hedge funds. Hedge funds pool money from different investors and then invest it with an aggressive approach, often implementing high-risk strategies. Generally, the investments include leveraged derivatives and both short and long positions in financial markets around the world. Despite the risk involved, hedge funds have been consistently delivering returns over the years, some more than others, and these are the ones which are among the world’s top 10 hedge funds.
Here is a brief overview of the top 10 hedge funds in the world in terms of assets under management (AUM):
10. Viking Global Investors
Viking Global Investors is a hedge fund based in Greenwich, Connecticut. They also have an office in Hong Kong. Having been in operation since 1999, the fund currently manages assets worth over $27 billion.
9. Man Group
Man Group is among the oldest hedge funds, having been in existing for over two centuries. It is based in London and listed on the London Stock Exchange as well. Their hedge fund manages assets worth over $28 billion. The company, as a whole, manages assets worth well over $50 billion, making Man Group one of the biggest money managers in the world.
8. Lone Pine Capital
Also based in Greenwich, Lone Pine Capital has been in business since 1997. The hedge fund follows a unique approach, in that they combine a bottom-up approach with fundamental analysis. They invest in both short and long positions in financial markets across the globe. Their current AUM is estimated to be around $29 billion.
7. AQR Capital Management
The third hedge fund on the list based in Greenwich, AQR Capital Management makes investments around the global in bonds (private and public), public equity, over-the-counter derivatives and public futures & options. AQR’s hedge fund division manages nearly $30 billion worth of assets.
Finally, a hedge fund not based in Connecticut, BlackRock operates out of New York. It employs over 11,000 people, making it one of the largest asset managers in terms of personnel involved. Besides their hedge fund, BlackRock offers a range of financial services, including insurance, savings and private equity. Overall, the firm manages $4.32 trillion worth of assets, with their hedge fund responsible for $31.323 billion.
5. BlueCrest Capital Management
BlueCrest Capital Management is a truly global asset management company. Founded in 2000, the company provides hedge fund management and alternative investment management services. With an asset portfolio of over $34 billion under their hedge fund, BlueCrest is the second-largest European hedge fund and the 5th largest in the world.
4. Brevan Howard Asset Management
The largest European hedge fund in the world, Brevan Howard is based in London. The privately-held firm manages over $40 billion worth of hedge fund assets. Brevan Howard has a diverse base of investment vehicles, including fixed income securities and currencies. It primarily invests in short-term opportunities, with a six-month limit.
3. Och-Ziff Capital Management Group
Based in New York, the Och-Ziff Capital Management Group has been providing asset and capital management services for over two decades now. As per their reports for the year ended 2014, the hedge fund was managing $47.1 billion in assets.
2. J. P. Morgan Asset Management
J. P. Morgan Asset Management is a part of the J. P. Morgan Chase & Co. and provides asset management services, including hedge fund management. The company manages assets worth over $2.4 trillion while their hedge fund manages $59 billion in assets.
1. Bridgewater Associates
Bridgewater Associates is #1 on the list of the world’s top 10 hedge funds with $87.1 billion in assets under its hedge fund management. The company is based in Westport, Connecticut and manages an overall $150 billion in assets through its various divisions and departments.
Hedge funds are a dime a dozen but the 10 mentioned here are the ones that have a track record of several years of success which has enabled them to attract more clients and get more assets under their management. For investors, putting their money into these hedge funds is a safe approach as they deliver consistent returns and minimize the risk involved in hedge fund investment.