Hedge funds

2025: Top 10 U.S. hedge funds

The 10 largest US hedge funds as of January 2025:

1. Citadel Investment Group (AUM: $244 млрд.)

2. Bridgewater Associates (AUM: $223 млрд.)

3. Millennium Capital Partners (AUM: $218 млрд.)

4. Mariner Investment Group (AUM: $187 млрд.)

5. AQR Capital Management (AUM: $164 млрд.)

6. Balyasny Asset Management (AUM: $160 млрд.)

7. Ares Management (AUM: $135 billion)

8. Renaissance Technologies (AUM: $130 млрд.)

9. Alphadyne Asset Management (AUM: $128 млрд.)

10. Point72 Asset Management (AUM: $117 млрд.)

Among the top 100 U.S. hedge funds, just over half are located in New York. The average hedge fund size is $52 billion, and the average number of employees in 1 hedge fund: 79 people.

In total, the top 100 hedge funds manage assets worth a whopping $5.2 trillion - and this figure is growing despite the popularity of passive investment.

In general, there are more hedge funds in the world than Burger King outlets: there are 30,000 hedge funds registered in the world - this is 10 thousand more than the number of Burger King's opened around the world - crazy competition in an industry where only units actually earn and hold most assets.

2024: Hedge funds are the art of taking your money beautifully on commissions of 30%

Goldman Sachs analyzed hundreds of hedge funds managing several trillion dollars.

The average management fee in 2024 rose to 1.77%, and the performance fee was 17.3%.

But the most interesting thing is that for some funds these figures do not include "pass-through" commissions (audit costs, lawyers, data access and other operating expenses), which in 2024 amounted to another 4.0% from above (compared with 3.3% in 2023)!

The increase in management costs is also confirmed by LCH Research: if in the late 1960s and 1970s less than 10% of gross yield went to the management fee, then over the past two decades this commission has eaten up almost 30% of gross yield.

2023: The world's largest hedge funds make record profits of $67 billion

In 2023, the world's 20 largest hedge funds made a record profit of approximately $67 billion. The previous maximum of $65 billion was recorded in 2021. Such data are provided in a study by LCH Investments, the results of which were released on January 22, 2024.

It is noted that leading hedge funds on a global scale manage about 19% of all assets. At the same time, in 2023 they earned about a third of the total annual profit in dollar terms. The numbers rose thanks in part to higher stock quotes. In general, the volume of the industry under consideration is estimated at $4 trillion.

The LCH rating for 2023 is headed by the TCI Fund Management, which earned $12.9 billion. It posted a 33% year-on-year gain, outperforming the U.S. S&P 500 index, which posted a 24% gain. As of the end of September 2023, TCI's assets include large stakes in Alphabet, Canadian National Railway, Visa, General Electric and Moody's.

In addition, the list of the most profitable hedge funds according to LCH in 2023 includes Citadel ($8.1 billion), Viking ($6 billion), Millennium ($5.7 billion), DE Shaw ($4.2 billion) and Pershing Square ($3.5 billion).

TCI and Pershing Square are the youngest funds in the rankings, competing with older groups such as Millennium and Citadel, which were founded in 1989 and 1990 respectively. The study found that the top 20 hedge funds have generated a profit of $755.4 billion since their formation - more than the $655.5 billion in assets they manage as of the end of 2023. Brad Amiee, director and head of research at LCH Investments, says strong stock market performance has been a contributing factor to a number of leading hedge funds.^[1]

2022: Loss of global hedge funds totaled $208 billion

At the end of 2022, global hedge funds received a loss of $208 billion. The data was published by investment firm LCH Investments at the end of January 2023.

In 2022, the largest representatives of the industry recorded multibillion-dollar profits, smaller funds ended the year in the red, writes Bloomberg. The largest 20 hedge funds after deducting commissions collectively earned $22.4 billion for their clients, the return on investments was 3.4%. At the same time, the loss of funds outside amounted to 8.2%.

In 2022, global hedge funds received a loss of $208 billion

The head of LCH Investments, Rick Sofer, drew attention to the fact that large hedge funds, which use not one, but many strategies, again achieved the greatest profits. According to Sofer, the Citadel fund with a result of $16 billion broke the record of investor John Paulson, who in 2007 put on the collapse of the mortgage "bubble" and earned $15 billion in a year.

Rising assets and higher fees are helping hedge funds multiple strategies to "win an expensive battle" to hire and retain top traders in 2022, according to Bloomberg. In general, according to LCH Investments estimates, since its inception, the industry has made customers a profit of over $1.4 trillion. At the same time, $692 billion, or 49% of all profits, earned only the 20 most effective funds, under the management of which was 19% of all assets in the industry.

In 2021, the 20 most successful hedge funds in total received a record profit of $65.4 billion in history. However, even the best in the industry still could not overtake the S&P 500. The top twenty hedge funds averaged 10.5% return, while the dividend-adjusted index rose 28.7% for the year. In general, hedge funds, according to LCH Investment estimates, earned $176 billion for their clients in 2021, the return on investments reached an average of 5%.^[2]

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