List of Top 100 Hedge Funds

Hedge funds are alternative investment funds that use pooled monies from investors and employ various strategies to make a significant return (or ‘alpha’) for those investors.

Different hedge funds focus on different investments; hedge fund managers employ a range of different techniques (often very complex) to generate the highest return possible.

A hedge fund is administered by an investment management firm; this usually takes the form of either a limited liability company or a limited partnership.

Hedge funds are usually only available to accredited investors and require a large initial investment.

The term ‘alternative investments’ is used frequently where hedge funds are concerned. This is because a hedge fund is not as tightly regulated as other investment vehicles; use of leverage is not capped and many invest in largely illiquid assets.

The list below gives the top 100 hedge funds worldwide. The list is in alphabetical order, so a hedge fund’s rank in this list does not reflect its size.

Each listing details the individual hedge fund’s investment style and, in some cases, the market opportunities it takes advantage of.

Top 100 Hedge Funds Worldwide

1. Adage Capital Management

A hedge fund sponsor owned by its employees. It caters to the requirement of pooled investment vehicles, launching and managing hedge funds for clients. Investments are made in the public equity market (US), with a focus on investing in value stocks.

2. Alcentra

A global asset management company with a focus on sub-investment-grade corporate credit.

3. Alyeska Investment Group

Takes a market-neutral approach on both long- and short-term positions. Has a strong focus on the healthcare sector.

4. Anchorage Capital Group

Has a strong focus on the finance sector (specifically defaulted and leveraged issuers). Manages private investment funds across different markets of North America and Europe (long and short basis).

5. Angelo Gordon & Co.

Dedicated to alternative investment; specialities include real estate debt and lending, distressed debt, residential and consumer debt, and non-investment-grade corporate credit.

6. Appaloosa Management

A specialist in distressed debt.

7. AQR Capital Management

The second-largest hedge fund in the world, it focuses on automated research practices and computer models. AQR is known for using both traditional and alternative investment strategies.

8. Arrowgrass Capital Partners

European-focused with a global, multi-strategy approach.

9. Arrowstreet Capital

Has a strong focus on the IT and finance sectors. Its main clientele includes pooled investment vehicles and pension/profit-sharing plans.

10. Balyasny Asset Management

Hedge fund sponsor owned by its employees. Almost all clients are pooled investment vehicles. Assets invested are predominantly in the IT and consumer discretionary sectors.

11. The Baupost Group

This hedge fund employs a long-term, value-orientated approach. It has significant holdings in private debt and private equity, publicly-traded debt & equity securities, and real estate.

12. Beach Point Capital Management

Specialises in credit-related investments. The firm focuses on less popular opportunities, employing a flexible, risk-controlled and value-orientated approach.

13. Benefit Street Partners

With a focus on credit, strategies include liquid loans, long/short liquid credit, private/opportunistic debt and high yield.

14. BlackRock

A global asset management corporation with a focus on effective risk management.

15. Blue Ridge Capital

A US-based hedge fund, focusing on real estate.

16. BlueCrest Capital Management

This hedge fund is focused on fixed-income macro trading and is one of the largest alternative asset managers.

17. BlueMountain Capital Management

Focuses on global markets, credit and private equity.

18. Bracebridge Capital

Absolute return strategy – trades a range of securities and derivatives.

19. Bridgewater Associates

The largest hedge fund in the world, focusing on a global macro-investing strategy.

20. Brigade Capital Management

Specialises in credit investment strategies with a multi-asset class, multi-strategy approach. Its main focus is on companies with leveraged balance sheets.

21. Brummer & Partners

European hedge fund focused on infrastructure, client base and risk.

22. Candriam

Providing investment solutions across four key areas – bonds, asset allocation, equities and absolute performance strategies. This hedge fund is also a leader in sustainable investments.

23. Canyon Partners

Taking a deep-value, credit-intensive approach, this hedge fund specialises in special situation (value-orientated) investments.

24. Capula Investment Management

A global fixed income specialist that manages enhanced fixed income, absolute return, volatility and tail-risk strategies.

25. Carlson Capital

A multi-strategy, alternative asset management firm focused on philosophy, people and process.

26. CarVal Investors

Focused on distressed credit markets and distressed assets, this firm thrived during the financial crisis.

27. Caxton Associates

Provides global macro-strategies in a variety of global markets.

28. Centerbridge Partners

An all-weather approach, focusing on sustained value through different economic cycles.

29. Cerberus Capital Management

Specialities include real estate, equity and credit.

30. Cevian Capital

An ‘active ownership’ investment firm that is focused on European investments – it acquires ownership positions in undervalued companies.

31. Cheyne Capital

Main areas of focus are social property impact, real estate debt, equities, event-driven & investment-grade corporate credit, strategic value credit, and convertible bonds.

32. Citadel LLC

A broad range of investment strategies – fixed income & macro, equities, commodities and credit (the firm has teams for each strategy).

33. Coatue Management

Focused on technology, media and telecommunications (public and private markets).

34. Comac Capital

A macro hedge fund with a focus on market movement related to economic and political changes.

35. The D.E. Shaw Group

Specialities include global investment and technology development.

36. Danske Capital

Strategies include absolute, fixed income, relative value, dynamic and dynamic plus.

37. Davidson Kempner Capital Management

One of the world’s oldest and largest hedge funds.

38. Discovery Capital Management

A focus on IT, communications, environmental/energy technologies, and health & life sciences.

39. Egerton Capital

Long/short and long-only equity with a research-based investment approach (stock picking).

40. Element Capital Management

Practises a modern macro style of investing.

41. Elliot Management

A strong focus on distressed securities (largely in the debt of companies near bankruptcy or already bankrupt).

42. Farallon Capital

Invests across asset classes, seeking to achieve returns through bottom-up fundamental analysis.

43. Fir Tree Partners

Invests worldwide in real estate, public companies, private companies and sovereign debt.

44. Fortress Investment Group

Private equity, permanent capital, credit and real estate investment strategies.

45. GAM Holding

Strategies include equity, fixed income, systemative, and multi-asset solutions.

46. Glenview Capital Management

Using a multi-strategy approach, it offers services to companies operating in stable industries.

47. GoldenTree Asset Management

Specialises in investment opportunities in the following sectors: leveraged loans, high-yield bonds, distressed debt, credit-themed equities, structured products and emerging markets.

48. Goldman Sachs Asset Management

A focus on long/short credit, tactical trading, multi-strategy and multi-manager investing.

49. Graham Capital Management

Leading the alternative investment market, this firm focuses on discretionary and quantitative investments.

50. Grantham, Mayo, Van Otterloo & Co. (GMO)

Long-term, valuation-based investments across a range of specialities.

51. HBK Capital Management

One of the longest-tenured hedge funds globally. It invests in just a small section of its total assets.

52. Henderson Global Investors

Its main focus is on fixed income, equities, sustainable & responsible investment asset classes, multi-manager, and commercial property.

53. Highfields Capital Management

A value-oriented firm which manages funds for charitable foundations and other philanthropic organisations (as well as its main clients).

54. Hillhouse Capital Management

Makes long-term investments and has a bottom-up, fundamental approach. Its main sector focus is TMT, consumer, healthcare and industrials.

55. Kayne Anderson Capital Advisors

This leading alternative investment firm primarily focuses on real estate, energy, credit and growth capital.

56. King Street Capital Management

Invests mainly in equities, bonds, distressed companies, foreign exchange, options and warrants.

57. Lazard Alternatives

Strategies include global equity, regional equity (UK, Asia-Pacific, etc.), fixed income, alternative investments, multi-asset, emerging markets, quantitative equity and convertibles.

58. Lighthouse Investment Partners

Its primary focus is on the following strategies: credit, fixed income, fundamental equity, statistical arbitrage, quantitative futures and relative value.

59. Lindsell Train Limited

Takes a long-term approach in key sectors that include pharmaceuticals and financial, internet, software, and branded consumer goods.

60. Lone Pine Capital

Invests in public equity markets worldwide.

61. M Square Investimentos

A long-term approach and a strong focus on the people (getting the right managers) rather than monetary strategies.

62. Magnetar Capital

Invests across equity and credit (both public and private). Core businesses include energy, fixed income, fundamental strategies and quantitative strategies.

63. Marathon Asset Management

Its main strategies are real estate, corporate credit, emerging markets, leveraged loans, structured credit and private credit.

64. Maverick Capital

A long/short fund, its main focus is on stocks.

65. Metacapital Management LP

Specialises in structured credit markets and mortgages.

66. Millennium Management

Uses a multi-strategy approach that includes commodities, fixed income, relative value fundamental equity, quantitative strategies and equity arbitrage.

67. MKP Capital Management

Its strategy includes credit, global macro and fixed-income relative value, with a long-term approach.

68. Moore Capital Management

A global macro investor, it invests in cash, macroeconomic themes, futures and derivatives.

69. Nephila Capital

Specialises in reinsurance risk (catastrophe bonds, insurance-linked securities, weather derivatives and insurance swaps).

70. Neuberger Berman

Invests via custom portfolios, registered liquid alternative funds and commingled products.

71. Och-Ziff Capital Management

Alternative global asset management firm that focuses on multi-strategy, real estate and credit.

72. OrbiMed Advisors

Invests across the healthcare sector. Investments are made in public and private equity, as well as royalty streams.

73. Paloma Partners

Multi-strategy but with a strong focus on relative value and quantitative approaches.

74. Paulson & Co.

Focuses on event-driven investment strategies like distressed credit, merger arbitrage, and bankruptcy reorganisations and restructurings.

75. Pershing Square Capital Management

Heavily focused on research; fundamental value investor (public markets).

76. Pharo Management

Specialises in developing countries and has a strong focus on macroeconomic trends.

77. Pictet Alternative Investments

One of the few solely independent asset managers. Clients include pension funds (some of the world’s largest), financial institutions and sovereign wealth funds.

78. Pine River Capital Management

Focused on relative value trading, it trades fixed incomes, stocks and derivatives.

79. Platinum Asset Management

This Australian equity management firm specialises in international equities investments.

80. Point State Capital

Focused on energy and global macro investment.

81. Polygon Investment Partners

Invests primarily in event-driven equities and convertible securities.

82. Renaissance Technologies

Specialises in systematic investment strategies and uses computer-based models to analyse and carry out investments.

83. Scopia Capital Management

Takes a value-driven, fundamentals-based approach. Key strategies include long-only, long/short with market neutrality and long/short with net-long exposure.

84. Select Equity Group

Long-only and long/short equity strategies with a focus on a limited selection of businesses.

85. Senator Investment Group

A long/short, event-driven firm providing services to pooled investment vehicles.

86. Silver Point Capital

Focuses on distressed debt and credit investments.

87. Spectrum Asset Management

A world-leading firm in the preferred and capital securities market, specialising in the management of preferred security portfolios.

88. Third Point

Invests using an event-driven, value-oriented strategy.

89. Tiger Global Management

Focuses on companies in the software, internet, consumer and payments industries. A public equity business with a private equity strategy.

90. Tilden Park Capital Management**

Primarily focused on fixed-income corporate credit and equity strategies, mortgages and other structured products.

91. Trian Fund Management

Primarily invests in alternative investment markets and public equity.

92. Tudor Investment Corp.

Best known for its discretionary macro trading.

93. Two Sigma Investments

Heavily governed by the principles of technology and innovation.

94. UBS Hedge Fund Solutions

A focus on commingled funds, with a range of advisory partnerships and customised discretionary portfolios.

95. ValueAct Capital

Invests in public equity and hedging markets. Focuses on companies that are currently out of favour with investors.

96. Varde Partners

Focuses primarily on opportunities in real estate, corporate assets & sovereign debt, infrastructure, residential mortgages, logistics & transportation, and speciality finance.

97. Viking Global Investors

A focus on long-only, long/short and liquid/illiquid strategies.

98. Wellington Management

Specialises in family office investing, sustainable investing, defined-contribution investments, financial reserves management, liability-driven investing and more.

99. Winton Capital Management

A key focus on statistical and mathematical data for the decision-making process.

100. York Capital Management

Takes an event-driven investment approach.

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