Skip to main content
MENU
Subscribe
  • Sign Up Free
  • LOGIN
  • Subscribe
  • Topics
    • Alternatives
    • Consultants
    • Courts
    • Defined Contribution
    • ESG
    • ETFs
    • Face to Face
    • Hedge Funds
    • Industry Voices
    • Investing
    • Money Management
    • Partner Content
    • Pension Funds
    • Private Equity
    • Real Estate
    • Regulation
    • SECURE 2.0
    • Special Reports
    • Washington
    • White Papers
  • Rankings & Awards
    • 1,000 Largest Retirement Plans
    • Top-Performing Managers
    • Largest Money Managers
    • DC Money Managers
    • DC Record Keepers
    • Largest Hedge Fund Managers
    • World's Largest Retirement Funds
    • Best Places to Work in Money Management
    • Excellence & Innovation Awards
    • WPS Innovation Awards
    • Eddy Awards
  • ETFs
    • Latest ETF News
    • Fund Screener
    • Education Center
    • Equities
    • Fixed Income
    • Commodities
    • Actively Managed
    • Alternatives
    • ESG Rated
  • ESG
    • Latest ESG News
    • The Institutional Investor’s Guide to ESG Investing
    • ESG Sustainability - Gaining Momentum
    • ESG Investing | Industry Brief
    • Innovation in ESG Investing
    • 2023 ESG Investing Conference
    • ESG Rated ETFs
  • Defined Contribution
    • Latest DC News
    • The Plan Sponsor's Guide to Retirement Income
    • DC Money Manager Rankings
    • DC Record Keeper Rankings
    • Innovations in DC
    • Trends in DC: Focus on Retirement Income
    • 2023 Defined Contribution East Conference
  • Searches & Hires
    • Latest Searches & Hires News
    • Searches & Hires Database
    • RFPs
  • Research Center
    • The P&I Research Center
    • Earnings Tracker
    • Endowment Returns Tracker
    • Corporate Pension Contribution Tracker
    • Pension Fund Returns Tracker
    • Pension Risk Transfer Database
  • Careers
  • Events
    • View All Conferences
    • View All Webinars
    • 2023 Canadian Pension Risk Strategies
    • 2023 Retirement Income
Breadcrumb
  1. Home
  2. Print
June 28, 2010 01:00 AM

95 managers in $1 trillion club

Bridgewater takes top spot; BlackRock gains through BGI addition

Christine Williamson
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    Concentrating: Donald A. Steinbrugge said investors are putting the majority of hedge fund assets with the largest firms.

    Hedge fund and fund-of-funds firms tracked by Pensions & Investments managed more than $1 trillion in worldwide assets at the end of 2009.

    That's nearly half of the $2.2 trillion that Hedge Fund Research Inc., Chicago, estimated made up the hedge fund industry as of Dec. 31.

    Using a combination of direct surveys with money managers, interviews with fund company executives, industry sources and — for the first time — regulatory filings, P&I compiled a ranking of 95 companies managing at least $1 billion in combined hedge fund and fund-of-fund assets from clients worldwide.

    About 60% or $611 billion of the $1.01 trillion total from P&I's ranking was managed in single- and multistrategy hedge funds with the $401 billion balance managed in funds of funds.

    The 25 largest companies, all managing at least $17 billion, ran $654 billion or 65% of total hedge fund and fund-of-funds assets in P&I's universe. The top companies managed $410 billion in single- and multistrategy hedge funds and $243 billion in funds of funds.

    (A full list of hedge fund/fund-of-fund managers with at least $1 billion of combined assets is available at http://www.pionline.com/wwmanagers.)

    The largest manager was Bridgewater Associates Inc., which managed $43.6 billion in multistrategy hedge fund assets as of Dec. 31, followed by Man Group, with $25.3 billion in direct hedge fund assets and $17.1 billion in funds of funds. BlackRock Inc. with $23.7 billion managed in direct assets and $16.6 billion in funds of funds, occupied third place.

    BlackRock is a relative newcomer to the cadre of large hedge fund managers, pushed by the 2009 acquisition of Barclays Global Investors. BGI reported hedge fund assets of $17 billion the previous year, while BlackRock's hedge fund assets totaled $8.2 billion. BlackRock spokeswoman Lauren Trengrove warned that a precise comparison of 2008 with 2009 wasn't possible because BlackRock recategorized a number of investment strategies when it integrated BGI into the company.

    Still, industry sources said BlackRock now is a more serious contender in the hedge fund industry, especially for institutional allocations, thanks to the addition of BGI's mostly institutional hedge fund family.

    BlackRock also followed an acquisition approach for hedge funds of funds with the acquisition of Quellos Group LLC, which managed $21.9 billion when the deal closed late in 2007.

    Concentration of assets

    Donald A. Steinbrugge, managing partner of hedge fund consultant and third-party marketing firm Agecroft Partners LLC, Richmond, Va., noted that the concentration of assets managed by the largest hedge fund and fund-of-funds managers in P&I's ranking reflects what's going on in the broader industry.

    Because many hedge fund companies are secretive about assets under management, P&I's list of hedge fund managers is biased toward companies with a significant institutional client base that are willing to share information.

    Mr. Steinbrugge estimated about 80% of assets being invested by pension funds and other institutions globally are “going into the biggest hedge funds. There is a significant concentration of assets in the top 10 managers. ... The industry is becoming much more institutionalized than it was 10 years ago (when) a company's brand (name) and distribution capabilities (were) just as important as expected future performance in raising assets.”

    Daniel Celeghin, a partner at Casey, Quirk & Associates LLC, Darien, Conn., a consultant to money managers, noted that P&I's top 25 ranking is “an interesting mix” of companies that manage only hedge funds, only funds of funds or a fairly equal mix of both.

    Mr. Celeghin divided the largest managers into several camps. U.S-based “hyper-institutional firms” like Bridgewater Associates, BlackRock, Och-Ziff Capital Management Group and Grosvenor Capital Management LP make up one camp, while “pure-play” hedge fund managers — which manage both institutional and high-net-worth assets — make up another camp. Those firms include Paulson & Co. Inc., Soros Fund Management LLC, Farallon Capital Management LLC, Baupost Group LLC, King Street Capital Management LP and Canyon Partners/Canyon Capital Advisors LLC.

    Another sector was hedge fund and fund-of-funds managers, mostly based in Europe, with significant assets from clients worldwide: Man Group, HSBC Global Asset, Brevan Howard Asset Management LLP, Union Bancaire Privee, Lyxor Asset Management and BlueCrest Capital Management Ltd.

    Yet another group is the diversified financial services companies with large institutional and wealth management businesses and significant hedge fund and fund-of-funds representation: Goldman Sachs Group, UBS Global Asset Management, J.P. Morgan Asset Management and Legg Mason/Permal Asset Management.

    Related Articles
    PIMCO, Vanguard, BlackRock lead in 'brand equity'
    Recommended for You
    Read the print edition of P&I
    Read the print edition of P&I
    Citadel's Ken Griffin gives $125 million to Chicago museum; name will change
    Citadel's Ken Griffin gives $125 million to Chicago museum; name will change
    Gender diversity is improving on FTSE 350 boards
    Gender diversity is improving on FTSE 350 boards
    Global Macro as a Much-Needed Diversifier
    Sponsored Content: Global Macro as a Much-Needed Diversifier

    Reader Poll

    May 1, 2023
     
    SEE MORE POLLS >
    Sponsored
    White Papers
    Counting on a Crisis: A Catalyst for Investment Innovation?
    A Strategic Allocator's Guide to Productivity and Profits
    Biodiversity: why investors should care
    Quantifying sustainability – the numbers, the data, and the people
    Valuing Banks: Hidden Losses Versus Assets
    Research for Institutional Money Management
    View More
    Sponsored Content
    Partner Content
    The Industrialization of ESG Investment
    For institutional investors, ETFs can make meeting liquidity needs easier
    Gold: the most effective commodity investment
    2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios
    Ten ways retirement plan professionals add value to plan sponsors
    Gold: an efficient hedge
    View More
    E-MAIL NEWSLETTERS

    Sign up and get the best of News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today
    December 12, 2022 page one

    Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors.

    Subscribe
    Connect With Us
    • RSS
    • Twitter
    • Facebook
    • LinkedIn

    Our Mission

    To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market.

    About Us

    Main Office
    685 Third Avenue
    Tenth Floor
    New York, NY 10017-4036

    Chicago Office
    130 E. Randolph St.
    Suite 3200
    Chicago, IL 60601

    Contact Us

    Careers at Crain

    About Pensions & Investments

     

    Advertising
    • Media Kit
    • P&I Content Solutions
    • P&I Careers | Post a Job
    • Reprints & Permissions
    Resources
    • Subscribe
    • Newsletters
    • FAQ
    • P&I Research Center
    • Site map
    • Staff Directory
    Legal
    • Privacy Policy
    • Terms and Conditions
    • Privacy Request
    Pensions & Investments
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • Topics
      • Alternatives
      • Consultants
      • Courts
      • Defined Contribution
      • ESG
      • ETFs
      • Face to Face
      • Hedge Funds
      • Industry Voices
      • Investing
      • Money Management
      • Partner Content
      • Pension Funds
      • Private Equity
      • Real Estate
      • Regulation
      • SECURE 2.0
      • Special Reports
      • Washington
      • White Papers
    • Rankings & Awards
      • 1,000 Largest Retirement Plans
      • Top-Performing Managers
      • Largest Money Managers
      • DC Money Managers
      • DC Record Keepers
      • Largest Hedge Fund Managers
      • World's Largest Retirement Funds
      • Best Places to Work in Money Management
      • Excellence & Innovation Awards
      • WPS Innovation Awards
      • Eddy Awards
    • ETFs
      • Latest ETF News
      • Fund Screener
      • Education Center
      • Equities
      • Fixed Income
      • Commodities
      • Actively Managed
      • Alternatives
      • ESG Rated
    • ESG
      • Latest ESG News
      • The Institutional Investor’s Guide to ESG Investing
      • ESG Sustainability - Gaining Momentum
      • ESG Investing | Industry Brief
      • Innovation in ESG Investing
      • 2023 ESG Investing Conference
      • ESG Rated ETFs
    • Defined Contribution
      • Latest DC News
      • The Plan Sponsor's Guide to Retirement Income
      • DC Money Manager Rankings
      • DC Record Keeper Rankings
      • Innovations in DC
      • Trends in DC: Focus on Retirement Income
      • 2023 Defined Contribution East Conference
    • Searches & Hires
      • Latest Searches & Hires News
      • Searches & Hires Database
      • RFPs
    • Research Center
      • The P&I Research Center
      • Earnings Tracker
      • Endowment Returns Tracker
      • Corporate Pension Contribution Tracker
      • Pension Fund Returns Tracker
      • Pension Risk Transfer Database
    • Careers
    • Events
      • View All Conferences
      • View All Webinars
      • 2023 Canadian Pension Risk Strategies
      • 2023 Retirement Income