Trader logo

Biggest Hedge Funds in the World

Despite facing economic hardships in the 70s and 00s, these firms evolved into the biggest hedge funds in the world.

By Chris GennonePublished 5 years ago 4 min read

Hedge funds play a key role in the evolving investment industry. In the 1970s, many hedge funds closed due to the stock market crash, reporting major losses. There was a resurgence in the 80s and 90s though promises of high returns on investments. Over the years, hedge funds expanded its resources to more mathematical and analytical practices, bringing in more assets. While they were forced to regroup after the 2008 recession, groups like Bridgewater Associates and the Man Group increased their popularity, becoming the biggest hedge funds in the world.

Bridgewater Associates

Founded by Ray Dalio, this Connecticut-based investment management firm is the biggest in the world with $160 billion in assets as of 2017. Bridgewater uses a global macro style that specializes with inflation, currency exchange rates and gross domestic product in the US. Beginning as an investment advisory service, Bridgewater led the way of risk parity investments in 1996. It's no wonder why Bridgewater is one of the biggest hedge funds in the world.

JPMorgan Asset Management

JPMorgan Chase is the largest bank in the US and its hedge fund unit is one of the biggest hedge funds in the world. Run by Mary Erdoes, who was named by Forbes as one of the most powerful women in the world, JPMorgan started off 2017 with $45 billion in AUM. They are also one of the biggest asset management companies and hedge fund firms in the world with nearly $3 trillion in assets.

AQR Capital Management

This Connecticut based firm focuses on a few different investment vehicles for both institutional clients and financial advisors. AQR uses a research-based approach with computer models and quantitative analysis to dictate portfolios. As of December 2017, AQR had $224 billion in assets under management, making them one of the biggest hedge funds in the world.

Two Sigma

Two Sigma also focuses on research while using other technological methods such as artificial intelligence. Like AQR, Two Sigma is heavily involved in representing quant funds, which selects securities using software programs and data to determine investments. Beginning the year with $38.9 billion in 2017 makes Two Sigma one of the biggest hedge funds in the world.

Renaissance Technologies

Founded by James Simons, a former code breaker in the Cold War, Renaissance Technologies is one of the oldest firms. Renaissance also embraces quant firms and utilizes mathematical models and analyses. Their Medallion Fund was one of the first to embrace this sort of trading, earning $55 billion in about 30 years. Renaissance remains one of the most popular and biggest hedge funds in the world.

D.E. Shaw & Co.

D.E. Shaw & Co is a global firm based in New York City. Since being founded by David E. Shaw in 1988, the firm has had the third highest returns of any other hedge fund in the world. Using a variety of methods, D.E. Shaw uses qualitative analysis to invest in technology, real estate, and other uses of energy. As of January 2018, the firm brought in $47 billion, making it one of the biggest hedge funds in the world.

Millennium Management

Founded in 1989 by Israel Englander, this hedge fund started with $35 million and as of March 1, 2018 has about $36 billion in assets. Millennium focuses on the alternative investment industry, investing in equity markets and futures, asset backed securities and currencies. Based in New York, one of the biggest hedge funds in the world also has offices in Connecticut and London.

Man Group

Founded in 1783 by James Man, this firm is one of the oldest and biggest hedge funds in the world. Early on, the Man Group would supply the Royal Navy with a daily rum ration, continuing to do this until 1970. They remain the largest publicly traded hedge fund company in the world with $103 billion in funds under management in 2017.

Winton Group

Based in London, the Winton Group uses models developed from scientific and mathematical research. The firm only started with $1.6 million when it launched in 1997 and by 2016, had $32 billion in assets, making it one of the fastest risers and one of the biggest hedge funds in the world.

Elliot Management

This investment management fund is also the largest activist fund in the world. Founded in 1977 by Paul Singer, Elliot Management started with just $1.3 million and focused on convertible arbitrage. During the stock market crisis in 1987 and recession in the 90s, the firm transformed into a hedge fund utilizing various strategies. With an AUM of $34 billion as of 2017, Elliot Management is one of the biggest hedge funds in the world.


About the Creator

Chris Gennone

Reader insights

Be the first to share your insights about this piece.

How does it work?

Add your insights


There are no comments for this story

Be the first to respond and start the conversation.

Sign in to comment

    Find us on social media

    Miscellaneous links

    • Explore
    • Contact
    • Privacy Policy
    • Terms of Use
    • Support

    © 2023 Creatd, Inc. All Rights Reserved.