92% Of Hedge Fund Capital Concentrated Among Top 11% Of Fund ManagersVW Staff
According to Preqin, the 570 firms that make up the $1bn Club, hedge fund managers that have amassed at least $1bn in assets, now control $2.78tn in assets out of the total $3.16tn* for the industry.
The hedge fund industry has now reached $3.16tn in assets as of the end of Q1 2015, but a growing proportion of these assets are concentrated among a small pool of large managers. The “$1bn Club”, which now includes 570 managers, represents 11% of the total 5,122 single-manager hedge fund managers across the globe. But these firms command a total of $2.78tn of industry capital, which amounts to 92% of the total assets in hedge funds.
Other Key Hedge Funds "$1bn Club" Stats:
- Size Breakdown of the Club: 22 fund managers currently handle $20bn or more in assets under management, and collectively control $790bn in assets. Members of the Club that manage between $1bn and $4.9bn collectively control $892bn in assets, or 28% of entire industry assets.
- Core Strategies of the Club: At least 27% of funds run by members of the Club are equity strategies (41% for managers with between $1bn and $4.9bn in assets). For managers with $20bn or more in assets, almost a quarter of their funds are multi-strategy funds.
- Average Year Established: For members of the Club with $20bn or more in assets, the average year of establishment is 1992, highlighting the long track record for a large number of these managers. For managers with between $1bn and $4.9bn, the average year of establishment is 2001.
- Prominent Locations: A total of 202 members of the $1bn Club are located in New York, and manage over $1tn between them. London is the second most notable location of managers in the Club, with 83 headquartered there managing $363bn in assets.
- Largest Fund Managers: Bridgewater Associates still commands the largest amount of assets, with a total of $169.5bn in assets under management. AQR Capital Management follows this with $64.9bn in assets.
Comment from Preqin:
“The $1bn Club, those hedge funds with at least $1bn or more in assets under management, have continued to grow over the past twelve months, both in terms of the assets they command and their influence on the hedge fund industry. This group of 570 hedge funds now accounts for 92% of the total assets managed by hedge funds. Within this group of elite fund managers, many have steadily grown their assets over decades demonstrating a consistently strong track record over many market cycles. Some newer entrants have either demonstrated superior performance in a shorter term to accumulate their assets or have spun out of existing $1bn Club firms to attract significant pools of capital to their new ventures.”
Amy Bensted – Head of Hedge Fund Products, Preqin