The U.S. has more hedge fund managers, more money invested in hedge funds and more institutional investors that invest in hedge funds than any other country, data released Thursday by Preqin showed.
American hedge fund managers ran $2.2 trillion, or 72%, of the $3.1 trillion managed globally in hedge funds as of June 30, and accounted for 60% of the 5,377 active hedge funds Preqin tracks.
About 21%, or 1,177 hedge fund managers are located in New York state; they managed a total of $1.1 trillion, or 36% of global hedge fund industry assets as of June 30. Connecticut is a distant second with 207 hedge funds managers running $334 billion, or 11% of industry assets.
California and Massachusetts are tied for third place with hedge fund firms in each state managing about 7% of worldwide industry assets, but California is home to 465 active hedge funds while 169 funds are located in Massachusetts. The 175 hedge fund managers domiciled in Illinois manage about 3%, or $107 billion of global hedge fund assets.
New York state also is the undisputed capital of hedge funds-of-funds management in the U.S., with 145 companies running 51% of the aggregate $569 billion managed by American firms. Preqin researchers noted that Blackstone Alternative Asset Management, the world's largest hedge funds-of-funds manager, managed $68 billion of the $291 billion managed in New York and 12% of the total managed in American hedge funds of funds.
The 3,170 U.S. institutional investors that invest in hedge funds represent 62% of the nearly 5,400 asset owners worldwide that include hedge funds in their portfolios.