Hedge Fund Asset Managers 2020 – The Top 5

Asset managers of the largest funds can earn millions of dollars per year and, in these cases even billions. Let us present you the biggest and most successful hedge fund managers of the past year.

1.Bridgewater Associates

Bridgewater Associates was founded by Ray Dalio in 1975. The firm serves institutional clients including pension funds, endowments, foundation, foreign governments, and central banks.Bridgewater Associates a global macro investing style based on economic trends such as inflation, currency exchange rates, and U.S. gross domestic product. Bridgewater Associates began as an institutional investment advisory service, graduated to institutional investing, and pioneered the risk parity investment approach in 1996. According to their website, they manage $160 billion in global investments spread across institutional clients, central banks and governments, corporate funds, and pension funds. The asset manager has 1500 employees. It has $87.1 billion in hedge fund management, making it the largest hedge fund management firm.

2. Renaissance Technologies

Renaissance Technologies is a global hedge fund asset manager who focuses on quantitative investments trading in global financial markets dedicated to producing exceptional returns for its investors by strictly adhering to mathematical and statistical methods. Their main investment style is macro investing based on economic trends such as inflation, currency exchange rates, and U.S. gross domestic product. Bridgewater Associates began as an institutional investment advisory service, graduated to institutional investing, and pioneered the risk parity investment approach in 1996. According to their website, they manage $160 billion in global investments spread across institutional clients, central banks and governments, corporate funds, and pension funds. It has $87.1 billion in hedge fund management, making it the second largest hedge fund management firm. James Simons, the co-founder of Renaissance Technologies, propelled his fund to the second spot on the list. Renaissance is one of the most popular quantitative firms, Simons had the most earnings of any hedge fund manager in 2018 after making $1.6 billion.  

3. Man Group

Headquartered in London, Man Group is the third-largest hedge fund operator with more than $60 billion of assets under management. It provides a range of funds to institutional and private investors. James Man founded the company in 1783 as a sugar cooperative and brokerage firm. With shares listed on the London Stock Exchange, it is the largest publicly traded hedge fund in the world today. Man Group provides long-only, alternative and private markets products on a single and multi-manager basis. They develop bespoke solutions and fund of hedge funds services which utilise the firm’s advanced technology, infrastructure and expertise. Man Group manages $112.7bn for their global clients, with institutional investors contribution 84% of the group’s funds under management.

4. AQR Capital Management

Cliff Asness, the co-founder of AQR Capital Management, has seen his firm's assets grow to more than billion since the firm was founded in 1998. AQR is the largest hedge fund representing the quantitative fund group and offers a number of different funds for high net worth and individual investors. However, the firm announced that it was cutting up to 10% of its workforce in early 2020 after losing substantial assets in 2019. They currently operate with 40 strategies ranging from traditional to alternative products. AQR has an overall $196bn AUM and 1000 employees.

5. Two Sigma

On the fifth spot we have Two Sigma, another hedge fund asset manager and major player in the quant fund world. Thanks to its innovative technology, Two Sigma is one of the 5 managers with the largest number in hedge fund assets with approximately $43 billion in assets under management. Two Sigma Investments was founded in 2001 by David Siegel, John Overdeck, and Mark Pickard. Today, Two Sigma, through its use of algorithms and with its unique culture, drives transformations in many industries including investment management and insurance.