Some clients, some investments, some risk; add a few billion dollars to the mix to create an internationally significant hedge fund.
Buffer funds may appear mysterious at first appearance. Still, they are merely a collection of investment funds that use client money to either outperform the market or act as a hedge against unanticipated changes in the market.
To maximize investor profits and minimize risk, hedge funds operate effectively.
About 3,600 hedge funds are registered in the United States alone, and the top 15 have over 600 billion dollars in assets under management (AUM).
What are the top quantitative hedge funds in the United States, and who are they?
According to the 2020 asset management reports, we’ve compiled a list of the 15 top quantitative hedge funds in the USA to help you.
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What Are the 15 Top Quantitative Hedge Funds In The USA?
Do you want to see the list of quantitative hedge funds in the USA? Below are the top quantitative hedge funds that are making the rounds in the USA:
#1. Bridgewater Associates
- Headquarters: Westport, Connecticut
- 2020 AUM: $98.9 billion
On our first list of quantitative hedge funds is Bridgewater Associates.
Over 1,500 people work at Bridgewater Associates, the largest hedge fund in the United States, and mainly serves institutional clients.
Overall, they deal with and work with pensions, endowments, charitable organizations, governments, and central banks worldwide, to name a few.
Since it was started in New York City, this hedge fund firm has its headquarters in Connecticut.
Bridgewater’s AUM has risen so rapidly since its inception in 1975 that it now holds the top rank in the industry.
Currently, this company has the following funds available to customers:
- Pure perfection. Investing tactics are the focus of this fund.
- Major Markets with only pure alpha. Investing in the many opportunities that Pure Alpha invests in is what this fund primarily concentrates on.
- Every Season. This fund focuses on this investment strategy as an asset allocation specialist.
- This is the ideal portfolio to be in. This fund is an actively managed variant of the All Weather fund.
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#2. Renaissance Technologies
- Headquarters: East Setauket, New York
- 2020 AUM: $70 billion
Using mathematical and statistical studies, Renaissance Technologies has developed quantitative models for its trading, investments, shares, futures contracts, forward contracts, and exchanges.
One of the reasons for the company’s success is its strict adherence to secrecy.
Over 30 years (1988-2018), Renaissance Technologies, which was founded in 1982 and is run by computer experts, has returned an impressive 39 percent of its after-fees and currently returns more than 66 percent annualized before fees.
Because the company only has 300 employees, this is a remarkable rate of return.
It is one of the top quantitative hedge funds in the USA.
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#3. Millennium Management
- Headquarters: New York City, New York
- 2020 AUM: $43.9 billion
Millennium Management, established in 1989 and now employs over 2,800 people, offers services across North America, Europe, and Asia.
Around 200 investment teams work for this firm, which provides voluntary advice to private funds.
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#4. Elliott Management
- Headquarters: New York City, New York
- 2020 AUM: $42 billion
Hedge funds, stocks, commodities, and real estate all fall under Elliott Management’s comprehensive investment management services.
Nearly half of the company’s 468 employees work there, and it has also invested in several other companies.
Elliot plans to relocate their headquarters to West Palm Beach, Florida, in 2020.
The fast growth of hedge funds in Florida during the past five years is partly to blame.
This hedge fund ranks among the top list of quantitative hedge funds in the USA.
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#5. BlackRock
- Headquarters: New York City, New York
- 2020 AUM: $39.9 billion
BlackRock is the world’s largest asset manager regarding the total amount of money invested.
The organization manages an incredible $8.67 trillion, including pension plans and governments, insurance companies, official institutions and endowments, charities, corporations and banks, and mutual and quantitative hedge funds.
BlackRock, despite its size, employs approximately 16,000 people worldwide and maintains 70 offices in 30 different countries.
ESG investing and the iShares division are the company’s most popular offerings.
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#6. Two Sigma
- Headquarters: New York City, New York
- 2020 AUM: $38.8 billion
When it comes to their investing, Two Sigma Investments makes use of artificial intelligence, machine learning, and distributed computing.
Since its inception in 2001, the company has taken a tech-centric investment strategy.
Over the past few years, Two Sigma Investments has grown to employ 1,600 people and has offices in North America, Europe, and Asia.
Compared to other older companies, this one has a better return. It ranks among the top list of quantitative hedge funds in the USA.
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#7. Citadel Securities
- Headquarters: Chicago, Illinois
- 2020 AUM: $34.3 billion
Citadel LLC was created in Chicago in 1990 and is an international hedge fund. Intriguingly, Kenneth Griffin, a 19-year-old Harvard student, was the brains behind this company.
He began trading convertible bonds as a sophomore.
Citadel LLC is known today for focusing on equities, fixed income, commodities, credit, and quantitative methods.
Around 1,400 people work for the organization across North America, Europe, and Asia.
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#8. D.E. Shaw Co.
- Headquarters: New York City, New York
- 2020 AUM: $34.2 billion
D.E. Shaw Company, established in 1988, is yet another company that uses complex mathematical models and computer algorithms to determine when market anomalies will emerge and when it is the appropriate time to invest.
There are 1,400 people holding jobs with this company.
It is possible to gauge the level of success that D.E. Shaw Co. has achieved by observing that, since its inception, the company has continually produced the fifth-highest returns on investment anywhere in the world.
In addition to being known for its many educational programs, D.E. Shaw Company is notable for its heavy reliance on mathematics and programming.
To name only a few examples, there are the Worldwide Online Olympiad Training (WOOT), the American Regions Mathematics League, and the International Mathematics Olympiad.
It is also one of the top quantitative hedge funds.
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#9. AQR Capital Management
- Headquarters: Greenwich, Connecticut
- 2020 AUM: $32.1 billion
AQR Capital Management is a significant investment firm with headquarters in Connecticut.
The company also has offices in Boston, Chicago, Los Angeles, Bangalore, Hong Kong, London, Sydney, and Tokyo.
Quantitative analysis, as well as forecasted values and momentum, serves as the primary inspiration for AQR’s investment decisions, which are subsequently included in their well-informed financial models.
The academic staff at AQR is well-known, and at least half of the company’s personnel hold doctorates in their respective fields.
The business has maintained an interest in teaching, and in 2014, in partnership with the London Business School, they founded The AQR Asset Management Institute.
The acquisition of significant investment skills such as asset management research and thought leadership is the primary emphasis of this educational institution.
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#10. Davidson Kempner
- Headquarters: New York City, New York
- 2020 AUM: $31.8 billion
Davidson Kempner Capital Management is an alternative investment management company that caters mostly to institutional clients and strongly emphasizes hedge funds.
The corporation oversees the work of 347 people located in five different offices worldwide: New York City, London, Dublin, Hong Kong, and Philadelphia.
Davidson Kempner’s approach to investment typically begins at the bottom and works its way up.
Because of their predilection for fundamental analysis, they frequently invest in distressed investments, merger arbitrage, equities, convertible bonds arbitrage, bankruptcies, and credit.
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#11. Farallon Farallon
- Headquarters: San Francisco, California
- 2020 AUM: $30 billion
Farallon Capital, an American investment firm established in 1986, presently has 165 experts working for it and has offices in the United Kingdom, Brazil, Japan, Singapore, and Hong Kong, in addition to its headquarters in the United States.
This company focuses primarily on serving clients in capital management, including university endowments, foundations, and other wealthy individuals.
Absolute return investing, which reached its zenith for Farallon in 2005, is an investment strategy that places primary emphasis on the returns that may be generated while also taking into account the level of risk involved.
However, considering the method has been used since 1949, it is doubtful that this assertion is correct.
#12. Baupost Group
- Headquarters: Boston, Massachusetts
- 2020 AUM: $29.1 billion
This fund was established in 1982 by William Poorvu, a professor at Harvard, and his colleagues.
The fund manages surprisingly substantial assets despite only 145 people on staff.
The company’s primary business is conducted in the United States, although it has two headquarters in Boston and London.
The Baupost Group generally emphasizes risk management, value investing, and long-term investments.
They have delivered scholarly presentations about the topic, and the most senior executives of the organization, including CEO Seth Klarman, intensely focus on removing emotions from investing.
#13. Canyon Capital Advisors
- Headquarters: Los Angeles, California
- 2020 AUM: $22.8 billion
As the second hedge fund to be created on the west coast, Canyon Capital Advisors specializes in scenario investments for sovereign wealth funds, family offices, and endowments, as well as other institutional investors.
The company, established in 1990, presently has around 200 employees.
Overall, Canyon’s AUM is generated through a mix of bank loans, distressed securities and convertible arbitrage, risk arbitrage, securitized assets, equities, and special-situation securities.
#14. Wellington Management
- Headquarters: Boston, Massachusetts
- 2020 AUM: $21 billion
Private investment management firm Wellington Management Company employs about 2,200 individuals, making it a significant employer.
Our company was created in 1933, making it the oldest.
So how has Wellington maintained its position as a cultural hub?
In addition to providing investment advice to over 2,200 institutions in 60 countries, the firm employs comprehensive investing techniques to achieve its significant AUM.
#15. Viking Global Investors
- Headquarters: Greenwich, Connecticut
- 2020 AUM: $19.9 billion
On our last list of quantitative hedge funds is Viking Global Investors
It should be no surprise that a firm with a name as rough and tumble as Viking Global Investors has managed to claw its way up to the 15th spot on this list.
The hedge fund known as Viking was established in 1999 in Connecticut and is currently home to over 200 financial experts.
For the most part, this organization focuses on early and late-stage ventures to accomplish its AUM statistics.
Conclusion
Before investing in these top quantitative hedge funds in the USA, research the list of quantitative hedge funds outlined above.
We hope this article has given all you need as regards the top quantitative hedge funds in the USA.
Frequently Asked Questions
These are the hedge funds making the top rounds in the USA and the world.
Visit the website of any of the top quantitative hedge funds above to find out how to invest.
Yes. Investing in these top quantitative hedge funds can make a lot of money. You can also lose all your money if you don’t follow the right rules.
A minimum of $100,000 is needed to start investing in these top quantitative hedge funds.
References
- Crunchbase. com—List of top Southern US Hedge Funds
- Finance.yahoo.com—10 Biggest Quant Funds in The World, 10 Stock Picks
- Investinginopportunity. org—Investing in Opportunity
- Crunchbase. com—List of top United States Hedge Funds
- Featured Image source
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