The assets of the 26 largest hedge funds grew a healthy 12.3% to $596.1 billion in the 18 months ended June 30, according to new data from Pensions & Investments.
In comparison, assets of the 25 largest hedge fund-of-funds managers grew an aggregate 4.1% to $345.1 billion during the same period.
The top three hedge fund managers as of June 30 based on assets were Bridgewater Associates with $58.9 billion; Man Group, $39.3 billion; and Paulson & Co., $35.2 billion.
The top funds of funds in terms of assets were Blackstone Alternative Asset Management with $37.2 billion; UBS Global Asset Management Alternative and Quantitative Investments, $30.8 billion; and Grosvenor Capital Management, $24.1 billion. (Grosvenor’s assets are based on its latest SEC ADV filing, dated March 30.)
P&I surveyed the largest hedge fund firms on their worldwide assets as of June 30; P&I’s previous rankings were based on assets as of Dec. 31, 2009. For firms that did not respond to the survey, information about their hedge fund and funds-of-funds assets was gleaned from ADV forms filed with the SEC and reliable press reports.
While the universe of the largest hedge fund managers appears to be thriving in terms of asset growth, the deep wounds suffered by fund-of-funds firms after the 2008 financial crisis have been slower to heal, sources said.
Although the 25 largest hedge fund-of-funds companies did report a modest aggregate increase in assets, up 4.1% over the 18 months to $345.1 billion, 40% of these managers experienced asset declines.
P&I’s data set for hedge funds of funds spans a longer time frame than for hedge funds, and comparative analysis over three years revealed a bleak picture for the former group of managers.
Aggregate hedge fund-of-funds manager assets declined 33.8% as of June 30 this year from $520.9 billion as of June 30, 2008. For the three-year period, 18 of the 25 largest fund-of-funds managers showed asset declines, with 17 firms experiencing drops of more than 10%, and 10 firms with declines greater than 25%.
The complete story will be published in the Sept. 19 issue of P&I.