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Very interesting data points via Absolute Return:

American hedge funds reported a healthy increase in assets in this year’s first half and now manage a combined $1.399 trillion. That’s $102 billion, or nearly 8%, more than they managed at the beginning of the year, according to the latest Billion Dollar Club, AR Magazine’s survey of American hedge funds managing $1 billion or more.

Bridgewater took the top spot again, followed by J.P. Morgan Asset Management and Paulson & Co.

Globally, hedge fund assets amount to $2.16 trillion, up slightly from the $1.82 trillion managed at the beginning of the year. Full results are available online at www.absolutereturn-alpha.com.

Q3, there were 241 American hedge fund firms managing assets of $1 billion or more, according to the survey, which appears in the October issue of AR. That’s an increase since January 2011, when there were 225 such funds holding a combined total of $1.297 trillion, according to the survey.

The industry’s growth comes at a time when overall hedge fund performance has been lackluster, indicating that most of the increase is due to new inflows from investors.

Bridgewater Associates emerges as this year’s biggest winner. With $70.3 billion as of July 1, Bridgewater not only remains the largest American hedge fund firm but also notched the biggest gain in assets, adding $11.4 billion — or 19.35% — since January. The rapid growth of Bridgewater’s new Pure Alpha Major Markets Fund, which the firm launched last year as a way to cap its original Pure Alpha fund, accounted for much of these gains.”

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Source:
American Hedge Fund Assets Reach $1.4 Trillion,
According to AR Magazine
October 3, 2011

Category: Economy, Markets

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11 Responses to “American Hedge Fund Assets = $1.4 Trillion”

  1. TheUnrepentantGunner says:

    wonder about that Paulson #. Is he not down 47% YTD, puking out a considerable portion of that in Q3, not to count all the redemption notices he received?

  2. constantnormal says:

    How does $1.4T compare with the total amount in pensions or IRAs/401Ks/403Bs, etc?

    I figure that whichever asset pool is the largest, that is where the financial Grim Reaper will strike next — whether that is due to simple greed, fraud, or accumulated stoopidity, I have no idea, but it seems as if the largest accumulations of money attract the greatest depredations … just from a gut feel perspective … I have no data to base this on.

    And this may not be due to plundering … as funds get larger, they also get less nimble and more difficult to manage.

  3. cthwaites says:

    Hedge fund assets are usually reported pre-leverage, right? I don’t know what the avg leverage is right now (it used to be around 2.5x)…so the firepower of hedge funds is much greater than there straight “AUM from which we deduct the fees” wd suggest

  4. [...] US hedge funds now manage $1,400,000,000,000. [...]

  5. JimRino says:

    Looks like there’s more then enough money to “create” “speculative opportunity”.

  6. b_thunder says:

    Paulson is @ $35B? Really? As of what date?

  7. TheUnrepentantGunner says:

    cthwaites that is correct…

  8. Greg0658 says:

    my pension provider must be in the wrong funds .. now just not enough cash to pay out at 55yo anymore .. wait another 8 .. sorry retailers – you wait too .. or maybe their just yanking/testing my __ (hire a lawyer)

    fact is the money isn’t there* .. its invested abroad .. when enough begin to ask – rules change

    * seems TBP taught me the “Promise” has been levered up 40:1 .. reflective in that $1.4T me thinks .. ie: Bridgewaters is also JPMs .. “possession is 9/10ths of the law” .. possession of what is what matters .. eureka > ITS a # in a # in a # in a # …

  9. ZackAttack says:

    versus VFINX and SPY at around $92b each in assets, a little over half the total of these top 10.

  10. rickw says:

    Who was likely on the other side of the $102B increase since the first of the year, i.e. any chance these are the pros that manage my 401(k)?

  11. [...] American Hedge Fund Assets = $1.4 Trillion [...]