A hedge fund is an investment vehicle that pools capital from a number of investors, and invests in securities and other instruments.
Here is a brief overview of the top 10 largest hedge funds as of 2014, ranked according to their assets under management (AUM).
10) Davidson Kempner Capital Management – $23.7 Billion
This global institutional investment management firm is headquartered in New York City and has offices in London and Hong Kong.
9) Elliot Management Corporation – $24.8 Billion
Elliot Management Corporation is the management affiliate of US hedge funds Elliot Associates L. P. and Elliot International Limited.
8) Renaissance Technology – $25.5 Billion
This hedge fund management company operates three funds: Medallion Fund, Nova Fund and Renaissance Institutional Equities Fund. It operates in East Setauket, Long Island, New York. It trades in markets around the world.
7) Adage Capital Management – $27 Billion
This privately-owned hedge fund sponsor primarily provides its services to pooled investment vehicles. It launches and manages hedge funds for its clients. It invests in equity markets and hedging markets in the US.
6) Baupost Group – $29.3 Billion
This hedge fund was founded in 1982 by Seth Klarman, who continues to run the fund. The investment philosophy of the firm emphasizes risk management. The firm is a value investing manager.
5) AQR Capital Management – $31.6 Billion
This investment management firm offers many quantitatively driven hedge fund and traditional investment vehicles to institutional clients and financial advisors. It has investments in many countries worldwide.
4) BlackRock – $34.27 Billion
This multinational investment management corporation is based in New York City. It is an independently managed firm. BlackRock, Inc. launched BlackRock solutions in 2000 to address risk management and business process challenges by combining risk analytics and investment systems with capital markets and business process expertise.
3) Och-Ziff Capital Management Group – $45.5 Billion
This hedge fund manager and global alternative asset management firm operates multiple investment strategies, including merger arbitrage, equity restructuring, convertible arbitrage, credit and distressed investments, real estate and private investments.
2) J. P. Morgan Asset Management – $62.6 Billion
This firm is a leading asset manager for individuals, advisors and institutions. Its investment professionals are located all over the world. They provide strategies that span the full spectrum of asset classes. The firm is one of the largest asset and wealth managers in the world, with excellent reputation.
1) Bridgewater Associates – $93.7 Billion
This investment management firm serves institutional clients including endowments, pension funds, foundations, central banks and foreign governments. It uses a global macro investing style based on economic trends like inflation and currency exchange rates. The company is headquartered in Westport, Connecticut and serves its clients all over the world.
The above-mentioned large funds are controlling more assets than ever.