Capula Investment Management LLP attracted the most institutional investment in its hedge funds in 2011.
At $825 million, the aggregate institutional inflows for Capula, a multistrategy hedge fund manager, were well above the next contender, D.E. Shaw Group, according to a Pensions & Investments analysis of reported hires. D.E. Shaw attracted $555 million of institutional investment into its multistrategy hedge funds.
Rounding out the top five asset gatherers in 2011 were activist hedge fund managers Trian Fund Management LP and ValueAct Capital Partners LP, which each brought in $500 million of reported institutional assets; and Ascend Capital LLC, a long/short equity manager, which was close behind with $465 million.
The assets garnered by the darlings of the hedge fund industry — the cadre of large hedge fund managers most recommended by institutional investment consultants — from pension funds, endowments, foundations and sovereign wealth funds in 2011 undoubtedly were much larger than P&I's data show because many new hires and increases to existing managers go unreported and the mandate sizes often are not provided.
D.E. Shaw, for example, attracted a total of $3 billion from institutional investors into its hedge funds last year, but many of its new clients are corporate defined benefit plans, insurance companies and sovereign wealth funds, which do not discuss the management of their portfolios, said Trey Beck, managing director at New York-based D.E. Shaw, in an interview.
Credit specialist BlueMountain Capital Management LLC, New York, ranked 10th in P&I's ranking with $323 million of reported hires from institutional investors, but actually brought in about $1 billion last year from pension funds and other institutional investors, said Stephen Siderow, founder and president, in an interview.
There are 35 hedge fund management companies that attracted at least $100 million of reported new mandates and follow-on institutional investments on P&I's list; hedge fund-of-funds managers that hit that level of new assets numbered only 10.