In simple terms, a hedge fund firm refers to a company that utilizes its clients’ money to invest in alternative investments. The aim of that is to either beat the market or offer a hedge against future market changes. According to recent studies, there exist over 15,000 hedge funds across the world. Furthermore, the US has about 70% of all the hedge fund assets, which is about $3 trillion AUM. Unlike traditional investments, hedge funds carry higher risks. That’s because they’re not subject to the regulations by the U.S. Securities and Exchange Commission (SEC) and other bodies, which are designed to protect investors. That said, here’s the list of the top 10 hedge fund firms in the world, according to their total assets under management (AUM).
Top 10 Hedge Fund Firms In The World Based On AUM
1- Bridgewater Associates ($140 Billion AUM)
Bridgewater Associates, founded in 1975 by Ray Dalio, is an American investment management firm. The Westport, Connecticut-based company offers its services to several institutional clients. Some of them include endowments, foundations, central banks, foreign governments, and pension funds. Furthermore, as of April 2020, the firm has about $140 billion AUM, making it the first on the list of top 10 hedge fund firms in the world.
2- Renaissance Technologies ($75 Billion AUM)
Sitting on the second spot on the list of top 10 hedge fund firms in the world is the Renaissance Technologies. That’s because the company currently has an estimated hedge fund of about $75 billion in AUM. RenTech, co-founded in 1982 by James H. Simons, is an East Setauket, New York-based investment management firm. It utilizes quantitative models to offer systematic trading services to various financial institutions.
3- Man Group ($70 Billion AUM)
Man Group occupies the third position on the list of top 10 hedge fund firms in the world. That’s because it currently has a total hedge fund of $70 billion AUM. Furthermore, Man Group was initially established in 1783 by James Man as a sugar cooperage and brokerage. It has its headquarters located in London, United Kingdom. However, it has other offices in some countries in the world, including in Boston, New York, Hong Kong, and Tokyo.
4- AQR Capital Management ($61 Billion AUM)
With a total hedge value of $61 billion in AUM, AQR sits on the fourth position on the list of top 10 hedge fund firms in the world. As of Q3 2019, the company’s total asset was about $185 billion. Speaking of AQR, it was co-founded in 1992 by Cliff Asness, David Kabiller, John Liew, and Robert Krail. Furthermore, the Greenwich, Connecticut-based company operates its business by offering qualitative investment services to various institutions.
5- Two Sigma Investments ($43 Billion AUM)
Two Sigma Investments, co-founded in 2001 by John Overdeck, occupies the fifth spot on the list of top 10 hedge fund firms in the world. That’s because the New York-based company currently boasts of $43 billion in assets under management. Furthermore, Two Sigma utilizes scientific methods for its trading strategies. Apart from New York, the company also has a few offices in the United Kingdom, Japan, and Hong Kong.
6- Millennium Management ($40 billion AUM)
Sitting on the sixth position on this list is Millennium Management. The company, founded in 1989 by Israel Englander, currently has about $40 billion assets under management. Furthermore, Millennium Management has its headquarters located in New York, USA. However, it also operates its business in a few other countries in Europe and Asia.
7- Elliott Management ($38 Billion AUM)
With about $38 billion in AUM, Elliott Management occupies the seventh spot on the list of top 10 hedge fund firms in the world. The company was founded in 1977 by Paul Singer and operates in different services, including Hedge funds, Private equity, and Distressed securities. Furthermore, the company has its headquarters located in New York. Apart from that, it has more than 3,000 employees, with some of them working in its other offices in Hong Kong, Tokyo, and the United Kingdom.
8- BlackRock ($33 Billion AUM)
With a total of $33 billion in AUM, BlackRock occupies the eighth spot on the top 10 list of hedge fund firms in the world. Founded in 1988, the company has its headquarters located in New York, USA. However, it also has about 70 other offices in about 30 countries in the world.
9- Citadel LLC ($32 Billion AUM)
Citadel has a total of $32 billion in AUM and occupies the ninth position on the list of top 10 hedge fund firms in the world. The company, founded in 1990 by Kenneth Griffin, operates its business using different investment strategies, including credit, fixed income, commodities, and equities. Furthermore, it has its headquarters located in Chicago, Illinois.
10- Davidson Kempner Capital ($31 Billion AUM)
Davidson Kempner Capital occupies the last spot on our top 10 list of hedge fund firms in the world. Currently, the company currently boasts of over $31 billion in assets under management. Furthermore, Davidson Kempner has about 347 employees in its five offices in London, Hong Kong, Dublin, Philadelphai, and New York, where it’s based. Speaking of the company’s business, it offers different services, including merger arbitrage, distressed investments, bankruptcy, convertible arbitrage, and a few others.