Bridgewater Breaks $80 Billion Mark to Top Hedge Fund 100 Ranking
Given the 12 percent jump in total assets under management from one year ago for the firms in the 12th annual Institutional Investor’s Alpha ranking of the world’s 100 largest single-manager hedge fund firms, investors are willing to bet on their fund managers’ ability to outperform markets. This year’s list managed some $1.3 trillion at the beginning of 2013. To put it in context, the Hedge Fund 100’s total assets represent roughly 58 percent of the $2.25 trillion in total hedge fund assets worldwide at the start of 2013.
Achieving heft can be a self-perpetuating strategy for some firms. “I think our size is a competitive advantage,” says Nagi Kawkabani, a partner at London-based Brevan Howard Asset Management, which is No.3 in the Hedge Fund 100, with $40 billion. Kawkabani thinks his firm is able to attract talented people because significant amounts of capital and resources can be made available to them. “You have to hire top talent to have strong performance,” he says. “Otherwise it’s like trying to win a sports championship with second-rate players.”
Mega-fund managers have to constantly evaluate whether more capital will work to their advantage, however.
To see how we selected the ranking, see our methodology on the right.
How We Compiled the Ranking
In the 2013 Hedge Fund 100, we provide each manager’s total hedge fund assets under management as of January 2, 2013, unless otherwise indicated. Where possible, we also show assets at the individual fund level, with net returns for two years and since inception, and 2012 fund capital as reported last year. The ranking last year was based on capital as of January 3, 2012, unless otherwise noted.
Asset totals reflect internally run, single-manager hedge funds and separate accounts, including long-only funds that charge hedge-fund-style fees; they exclude funds of hedge funds, overlay accounts, funds managed by third parties, mutual funds and traditional long-only money, dynamic money market funds, assets in collateralized debt and bond obligations, private equity and venture capital. We gathered data through questionnaires completed by hedge fund managers, supplemented by extensive staff research. Senior Editor Jane B. Kenney compiled the ranking with the assistance of Senior Contributing Writer Stephen Taub. To request a questionnaire for next year’s Hedge Fund 100 ranking, please e-mail your contact details to hf100@iimagazine.com.