Tags: hedge | fund | assets | S&P 500

Big Hedge Funds Raking in Assets

Friday, 06 Sep 2013 09:06 AM

By Dan Weil

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While hedge fund returns are lagging the stock market this year, that hasn't prevented big hedge funds from getting even bigger.

The number of hedge fund firms with at least $1 billion in assets increased to 287 as of June 30 from 269 at the beginning of the year, according to Absolute Return magazine. And the asset total for the 287 registered $1.57 trillion, up from $1.46 trillion for the 269.

"Pension investments are still contributing substantially to the growth at the very largest firms, and that's because consultants tend to steer toward the bigger name funds," Chris Hagstrom, managing director of UBS, tells the magazine.

Editor’s Note:
5 Phases of a ‘Retirement Heist’ Exposed (See Video)

The biggest firms are Bridgewater Associates with $81.9 billion in hedge fund assets, J.P. Morgan Asset Management with $50.6 billion, Och-Ziff Capital Management Group with $33.9 billion, BlackRock with $28.7 billion and Baupost Group with $28.5 billion.

J.P. Morgan has added the most assets so far this year, $6.6 billion, followed by Adage Capital Management with $4 billion.

As for performance, the Absolute Return Composite Index of hedge funds rose 4.05 percent in the first half of the year, CNBC reports. The Standard & Poor's 500 Index appreciated 19.63 percent during that period.

Short stock positions have hurt hedge funds, says Amanda Schneider of Goldman Sachs. "The most important long positions have outperformed the S&P 500 by about 300 bp [basis points] so far in 2013," she writes in a report obtained by Business Insider.

"Unfortunately, many widely held short positions continue to outperform, offsetting the strong performance of popular longs and hampering overall hedge fund returns."

Editor’s Note: 5 Phases of a ‘Retirement Heist’ Exposed (See Video)

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