Introduction
Investors and traders are talking more and more about hedge funds these days. The public’s interest started to grow in early 2021. This was when small investors on a Reddit channel called WallStreetBets talked about evil things hedge funds had done. They also talked about how they worked together to fight back.
Since then, the interest in the top hedge funds in the world has been piqued. If you are interested in hedge funds, this article will help you. We listed the top hedge fund names in the world. You can invest with any of them if you qualify. Let’s dive right in.
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The Top 15 Hedge Funds Names in the World.
#1. Blackrock
BlackRock is a respected giant in the world of hedge funds. It is often talked about in the world’s top financial media. It was started by business moguls like Larry Fink, Susan Wagner, Robert S. Kapito, and others.
The hedge fund company has grown so big that it can’t measure in billions anymore. It now has about $9.5 trillion in assets under management. Blackrock is one of the top hedge fund names in the world.
The company started as a risk management and fixed-income institutional asset management firm. Its massive success in the financial markets helped it grow into the largest fund manager in the world.
Even though the company manages a long list of hedge funds, it also offers a wide range of index funds. It is also a passively managed investment portfolio for the general public. This has helped the company build up such a high AUM.
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#2. AQR Capital Management
AQR Capital Management is one of the top hedge fund names in the world. Cliff Asness, David Kabiller, John Liew, and Robert Krail started AQR Capital Management. The company has been around since 1998 and has its main office in Greenwich, Connecticut. It works with institutional investors, financial advisors, and people with a lot of money.
The company may only be a few decades old, but it already has more than $248.9 billion in assets. The fund’s assets are usually invested in many ways, such as traditional securities and derivatives.
The firm is famous for taking a quantitative or systematic approach to investment. This includes several other hedge fund managers. This requires a lot of math and data analysis.
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#3. The Bridgewater Associates
Billionaire investor Ray Dalio started Bridgewater Associates in 1975. It is one of the top hedge fund names in the world. The company has grown into a significant player. It has more than $150 billion in assets under management as of March 2021.
Fortune magazine once called Bridgewater one of the five most important private companies in the United States. Bridgewater does short selling, and it once made $14 billion in a short-selling frenzy on European stocks. However, it looks at the big picture when making decisions.
This means that the company’s investments are based on the state of the world economy. They do this rather than on specific stocks.
His company makes bets on the market by using the investment strategy Pure Alpha and All-Weather.
Attic Capital says Bridgewater Associates has an annualized return of about 11.5%.
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#4. Renaissance Technologies
Renaissance Technologies is one of the top hedge fund names in the world. Howard L. Morgan and Jim Simons 1982 set up renaissance Technologies. It is a large company that manages more than $165 billion in client assets.
The company is in Long Island, New York, and has about 300 employees. Of those, more than 150 are investment advisors.
According to Benzinga, the fund is one of the most successful in the world. The firm’s Medallion fund is one of Wall Street’s most profitable and closely guarded secrets today.
Renaissance Technologies uses complex math and data science to give it a technological edge in the market. However, much isn’t known about its exact investment strategies.
After all, you need the invitation to invest in the Medallion fund. Most of the time, only the company’s employees can do so.
Institutional Investor says that the firm’s Medallion fund has averaged annual returns of about 66%.
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#5. Elliott Asset Management
Elliott Asset Management, also called “Elliott Management,” was set up by Paul Singer in 1977. It quickly became the top management firm on Wall Street, with a portfolio worth more than $48 billion.
The singer is an activist investor who buys large stakes in publicly traded companies that need a push in a direction. Once they have a significant stake in a company, they use their extensive holdings to force the company to make changes that fit their vision of a better world for investors.
More than a third of the fund manager’s portfolio has “distressed securities.” These are investments in companies or governments that are having trouble paying their bills. Elliot Asset Management is one of the top hedge fund names in the world.
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#6. Two Sigma Investments
Two Sigma Investments is one of the top hedge fund names in the world. It has worked with institutional and high-net-worth investors for about 20 years.
Even though it’s one of the more recent hedge fund managers on the list, no one can deny its popularity. It has more than $68.90 billion in assets under management.
Some of the most intelligent people on Wall Street, like David Siegel, Mark Pickard, and John Overdeck, started the company.
They all have a lot of experience making smart moves in the market. The company is just one of many that develop and use trading strategies based on technological advances.
In particular, Two Sigma is famous for using artificial intelligence and machine learning. It also has distributed computing in its trading strategies.
This has been a successful method since the company started. With more than 30% annualized returns, this high-tech investing seems to be paying off.
#7. Millennium Management
Israel Englander, a wealthy investor, set up Millennium Management in 1989. The $48.3 billion in assets show that Millennium is in charge of a good amount. Millennium management is one of the top hedge fund names in the world.
Millennium’s style of managing investments is that of a classic hedge fund. They put a lot of emphasis on both fundamental and technical analysis.
This is at the heart of a variety of investment strategies. From low-risk fixed-income strategies to fast-paced quantitative and derivatives trades.
This strategy mix ensures that investments with more risk, like derivatives, have a balance like investments with less risk, like fixed-income securities.
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#8. D.E. Shaw & Co.
D.E. Shaw is another giant hedge fund management company. David E. Shaw set it up. The New York City-based company has been around since 1988. Its website says it has a portfolio of investments worth about $55 billion. D.E Shaw & Co is one of the top hedge fund names in the world.
The fund management company is best known for making mathematical models and computer programs. They may be hard to understand, but they help to find and take advantage of mistakes in the stock market.
Institutional Investor says that the fund management company gives its investors average annualized gains of about 10.8%.
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#9. Tiger Global Management
Tiger Global Management is another young hedge fund manager that has made a big name for herself on Wall Street. It was started in 2001 by billionaire investor Chase Coleman. Today, the company takes care of investments worth about $65 billion on behalf of its clients.
The company invests in stocks, bonds, and other financial instruments. Most of its moves are in the technology sector. Its main focus is investing in software, the Internet, consumer, and financial technology.
Value Walk says that the company’s focus is on technology. Its strategy for investing in the sector has been good for its customers. This gives the average annual return of about 27%. Tiger Global Management is one of the top hedge fund names in the world.
#10. Davidson Kempner Capital Management
Davidson Kempner is a well-known investment fund that has done well for a long time. Marvin H. Davidson set it up in 1983. Most hedge funds invest technically, but Davidson Kempner’s approach is strictly fundamental. Most of their investment decisions are on what’s going on at the time.
This means that the company looks for events that make the price of assets go up or down. They then trade based on how the price will likely move due to the event.
Over time, the company has done well with this plan. It has more than $42 billion in assets under management, so it has a lot of money to work with. It is also known for making extraordinary returns.
#11. Citadel
Citadel is probably one of the first big hedge fund names that come to mind. Especially if you are “in the know” about the social side of Wall Street. It is one of the top hedge fund names in the world.
Ken Griffin set up Citadel in 1990. As of October 2020, the company was in charge of about $38 billion in assets. The company is best known as a short-seller, which means it bets against the success of certain assets.
However, that’s not the only strategy the experts at Citadel use when they work in the financial markets. Its investments are also part of a plan to build long-term relationships with thousands of companies and institutions.
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#12. Lone Pine Capital
Stephen Mandel began Lone Pine Capital in the year 1997. The fund manager focuses on traditional long-term and short-term investments. It also has several long-only funds. Lone Pine Capital is a private investment management firm working with institutions and wealthy investors.
Today, the fund management company is more than $27.5 billion. However, only about 50 people work there to keep costs low. Stephen Mandel worked at Tiger Global Management before starting Lone Pine Capital. He was one of more than 30 people who left Tiger to start their fund management company.
Lone Pine Capital is one of the top hedge fund names in the world.
#13. Point72 Asset Management
Steve Cohen started S.A.C. Capital Advisors in 1992 was the first step toward Point72 Asset Management. In 2014, the company changed the name of its investment business to Point72 Asset Management. Today, it is one of the top hedge fund names in the world.
Today, the firm manages more than $22.2 billion in assets for its investors. They have more than 1,650 employees. The company has three main plans:
Investing in the traditional long/short way. Here, you buy stocks when you think their value will go up and sell stocks when you think the company’s value will go down.
Macro Investments. Macro investing means putting money into whole markets by taking long or short positions. This investment is what made Ray Dalio well-known on Wall Street.
Investing in a planned way. Systematic investing is a way to avoid making any decisions at all. The plan is to develop a set of trading rules that investments must follow to make.
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#14. Baupost Group
Another big player on Wall Street is the Baupost Group. It is one of the top hedge fund names in the world. In 1982, William Poorvu, a professor at Harvard, and his partners Howard Stevenson, Jordan Baruch, and Isaac Auerbach started it. Poorvu asked Seth Klarman to run the business from the start, and he is still in charge today.
The company has assets worth more than $12.32 billion right now. It is well known that the company invests with an eye toward long-term value.
However, not much else is open about how the company moves on Wall Street. Even the company’s website doesn’t have much to offer.
It just says that investors and employees of the company are the only ones who can use it and asks visitors to log in. Still, the company’s plan has to be on something. Gurufocus says that, on average, the fund gives investors returns of about 20% per year.
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#15. Appaloosa Management
Appaloosa Management is a hedge fund started by David Tepper and Jack Walton in 1993. It has a different way of investing that has helped it get about $6.9 billion in assets under management.
Sure, the company sometimes invests in traditional securities and sometimes uses derivatives. Most of the investments that Appaloosa Management makes are in troubled debt. Investing in distressed debt means buying debt from struggling companies at a big discount.
They do this in the hopes that the company will get back on its feet. After which, they would be able to pay back the debt in full with interest.
By buying distressed debt, Appaloosa gives itself two ways to make money. It usually makes money from its investments no matter how well the companies are. Overall, investors have been happy with this way of investing.
This has given them an annualized return rate of 11.9%. It is one of the top hedge fund names in the world.
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Summary
Hedge funds are alternative investments that use a variety of strategies; derivatives, short-selling, and other speculative methods. They use these to earn a higher return than the market.
Hedge funds put their money into both the domestic and international markets. They usually have minimums of $1 million and look for wealthy people, pension funds, and institutional investors. You should be on the lookout for the top hedge fund names in the world.
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Frequently Asked Questions
The Bridgewater Group. With about $150 billion in the capital, Bridgewater is the biggest hedge fund in the world. Since it started in 1975, Bridgewater has given its investors $52.2 billion in profits. This is more than any other hedge fund in the world.
In 2019, the United States had the most assets under management by hedge funds. The assets that hedge fund managers in the United States were in charge of were worth about $2.7 trillion.
BlackRock, based in New York City, is the biggest investment manager in the world. It has around $8.67 trillion in assets in all kinds of funds. It is the biggest, but Bridgewater is the best.
There are about 10,000 active hedge funds. They have a variety of investment strategies. Most use leverage and derivatives, while others are more conservative and use little or no leverage.
Yes. Most people who want to put money into a hedge fund need at least $7.5 billion in investable assets. Many investors pay Bridgewater fees of at least $500,000 and sometimes as much as $4 million a year.
References
- finance.yahoo.com– Value Hedge funds
- swfinstitute.org– Top Hedge fund managers
- nypost.com– Top edge fund managers
- money.usnews.com– Top hedge funds this year
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