Among the hedge fund firms with at least $10 billion in assets in P&I’s 2022 hedge fund manager universe, New York-based Schonfeld Strategic Advisors LLC had the largest growth in AUM at 71%, to total $13.8 billion as of June 30.
The growth propelled the firm to the 32nd spot in the hedge fund rankings from 51 in 2021 when the firm’s growth was up 46.1% to $8.1 billion.
Ryan Tolkin, the firm’s CEO and CIO, said the multistrategy firm in the past year has expanded its organic capacity by adding 20 new partners and dozens of fund analysts, technologists and operations experts as well as developing long-term partnerships with external trading teams.
The firm’s employee base now totals 820 people in multiple offices around the world to accommodate 110 portfolio management teams and other employees.
“Our strong growth has been fueled by opportunity across markets over the year ended June 30,” Mr. Tolkin said.
The firm manages multiple hedge fund strategies within four broad categories — quantitative, fundamental equity, tactical trading, and combined discretionary macro and fixed income.
Within the broad strategy areas, Schonfeld’s strategies range from long/short equity, tactical trading, systematic, event-driven, risk and volatility arbitrage, discretionary macro, commodities and other approaches.
The firm continues to “increase the strategies it offers seeking diversity across regions and markets from offices in the U.S., Asia, Australia, the Middle East, Europe and the Americas,” Mr. Tolkin said.
The firm also is increasing its institutional investor base, said Mr. Tolkin, noting that the company works closely with clients offering transparent relationships because “we want our clients to understand what we do.”
About three-quarters of Schonfeld’s AUM is institutional.
Other $10 billion-plus hedge fund firms with strong asset growth in P&I’s universe includes Balyasny Asset Management LLC, Chicago, up 60% in the year ended June 30. That pushed the multistrategy firm to the 27th spot in P&I’s ranking with $16 billion in assets from the 39th spot a year ago.
In written comments, Anita Nassar, partner and senior managing director, said “Balyasny’s goal is to empower our LPs to be the best investors they can be. We partner with our investors in a way that ensures transparency, alignment of interest and long-term objectives which has contributed to our growth.”
She added “to this end, we encourage a lengthy due diligence process and investors are given access to our risk analytics, investment process and data intelligence.”
Miami-based tail-risk specialist Universa Investments LP, moved up to No. 24 in the ranking with AUM of $19.1 billion, up 54.4% from the 32nd spot in 2021.
Brandon Yarckin, chief operating officer, said in an interview that the firm’s growth was driven by a “significant majority of new investors,” noting that “Universa shines when markets get really bad. Pension funds get really nervous when markets are like this. We give them more security and we help investors put a higher focus on risk and drawdowns.”
London-based Man Group PLC saw its worldwide AUM managed in hedge funds rise 15.9% to $73.5 billion as of June 30.
“If you look at the past 12 months ended June 30, institutional investor demand focused on a mix of strong strategies, especially quantitative macro and equity market-neutral strategies, which did well in tough markets. Net inflows also went into absolute strategies. There were big moves into commodities and currencies in the face of rising inflation” during the time frame, said Mark Jones, deputy CEO, in an interview.
On the bright side, Mr. Jones said market conditions are creating more dispersion between companies, which provides more investment opportunities for hedge fund managers.