{"id":42365,"date":"2014-05-30T08:00:34","date_gmt":"2014-05-30T12:00:34","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=42365"},"modified":"2014-05-30T08:14:31","modified_gmt":"2014-05-30T12:14:31","slug":"the-1-billion-club-largest-hedge-fund-managers-dominate","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/05\/2014\/the-1-billion-club-largest-hedge-fund-managers-dominate.html","title":{"rendered":"The $1 Billion Club \u2013 Largest Hedge Fund Managers Dominate"},"content":{"rendered":"<p><a href=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2012\/10\/research_glasses.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-full wp-image-32126\" src=\"http:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2012\/10\/research_glasses.jpg\" alt=\"research\" width=\"286\" height=\"227\" \/><\/a>New York (HedgeCo.Net) &#8211; There are currently more than 500 hedge fund managers with\u00a0$1bn or more in assets under management. With these firms\u00a0representing approximately 90% of total industry assets, they\u00a0make up a significant proportion of all capital managed by hedge\u00a0funds.<\/p>\n<p>In a new study <a href=\"https:\/\/www.preqin.com\/docs\/newsletters\/hf\/Preqin_Hedge_Fund_Spotlight_May_2014.pdf\" target=\"_blank\">Preqin<\/a> takes an in-depth look at what it takes\u00a0to be at the top of the industry and to be part of the \u201c$1bn Club.\u201d\u00a0With more assets than the next three largest fund managers combined, Bridgewater Associates is the largest hedge fund manager today, with around $157bn in assets under management.<\/p>\n<p>There are some noticeable patterns when looking at the breakdown of strategies employed by fund managers:<\/p>\n<ul>\n<li>New York is home to the largest proportion of fund managers with more than $1bn in assets<\/li>\n<li>Long\/short is by far the most utilized of all the\u00a0strategies, with around 42% of all funds managed by $1bn Club\u00a0members using this strategy.<\/li>\n<li>Of the funds belonging to managers\u00a0with $1-4.9bn in assets, 46% use a long\/short strategy, compared\u00a0to 32% of managers with more than $20bn in assets<\/li>\n<li>Long\/short funds are the most prominent within the overall hedge fund\u00a0industry; however, often these funds can have a limited capacity\u00a0as investment opportunities may be restricted by the geography or\u00a0sector in which the fund principally invests.<\/li>\n<li>Outside of long\/short, multi-strategy and macro strategies are the\u00a0most utilized strategies by the largest hedge fund managers<\/li>\n<li>The largest fund managers have settled on two approaches \u2013 specialization in one core strategy or diversi?cation across several different strategies<\/li>\n<li>Forty-six institutions have joined this exclusive club of investors, with more than $1bn invested in hedge funds in the 12 months since Preqin last conducted this study in May 2013. This is an increase compared to the 26 institutional investors that joined the \u201c$1bn Club\u201d between 2012 and 2013, highlighting the fact that many of these large investors are actively increasing their hedge fund allocations<\/li>\n<li>Public pension funds are the largest group of investors, in terms of capital invested in hedge funds<\/li>\n<\/ul>\n<p>Of all fund managers with more\u00a0than $20bn in assets, 29% offer a single strategy through their\u00a0funds and 38% offer six or more strategies. The number of $20bn\u00a0plus managers offering between two and five core strategies is\u00a0significantly less, with only 8% providing exposure to four or five\u00a0strategies.<\/p>\n<p>The medium-sized managers are split fairly evenly,\u00a0with those between $10bn and $19.9bn offering a varying number of strategies. One thing to note is that outside of the $20bn plus\u00a0managers, very few fund managers offer 10 or more strategies, showing that this approach is essentially exclusively reserved for the largest fund managers. The managers with $1-4.9bn in assets are noticeably more consistent in their strategic approach. Over half of these managers offer just one strategy, with the number\u00a0steadily declining as the number of strategies offered increases.<\/p>\n<p>Editing byAlex Akesson<br \/>\nFor\u00a0<a style=\"color: #743399;\" title=\"hedge funds\" href=\"http:\/\/www.hedgeco.net\/\">HedgeCo.net<\/a><br \/>\n<a style=\"color: #743399;\" href=\"mailto:alex@hedgeco.net\">alex@hedgeco.net<\/a><br \/>\n<a style=\"color: #743399;\" title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\/\">HedgeCo.Net<\/a>\u00a0is a premier\u00a0<a style=\"color: #ff4b33;\" title=\"hedge fund database\" href=\"http:\/\/www.hedgeco.net\/\">hedge fund database<\/a>\u00a0and community for qualified and accredited investors only. Membership in\u00a0<a style=\"color: #743399;\" title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\/\">HedgeCo.net<\/a>\u00a0is FREE and EASY. We also offer FREE LISTINGS for\u00a0<a style=\"color: #743399;\" title=\"hedge fund\" href=\"http:\/\/www.hedgeco.net\/\">Hedge Funds<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>New York (HedgeCo.Net) &#8211; There are currently more than 500 hedge fund managers with\u00a0$1bn or more in assets under management. With these firms\u00a0representing approximately 90% of total industry assets, they\u00a0make up a significant proportion of all capital managed by hedge\u00a0funds. [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[919,3],"tags":[],"class_list":["post-42365","post","type-post","status-publish","format-standard","hentry","category-hedge-fund-research","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/42365","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=42365"}],"version-history":[{"count":8,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/42365\/revisions"}],"predecessor-version":[{"id":42376,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/42365\/revisions\/42376"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=42365"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=42365"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=42365"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}