INFORMING THE HEDGE FUND COMMUNITY

50 US
THE US' LARGEST 50 SINGLE MANAGERS RANKED BY AUM
I N A S S O C I AT I O N W I T H

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Introduced by Philippe Teilhard
Global Head of Prime Brokerage Group, NewEdge

Welcome to the rst edition of The Hedge Fund Journals US50 published in association with Newedge. Much like its European and Asian predecessors, the EUROPE50 and the ASIA25, the US50 is a listing of the fty largest US single hedge fund managers ranked by assets under management as at 30th June 2008. This time The Hedge Fund Journal (THFJ) has turned its inquisitive eye on the hedge funds industrys birthplace the United States of America. It was in New York that Alfred Winslow Jones formed the rst hedge fund. He applied the basic techniques associated with hedge funds today, namely leverage and short selling, to hedge out his risk, and he avoided the Investment Company Act of 1940 by keeping below the 99 investors threshold. In his rst year he made a 17.3% return on his US$100,000 seed investment. Twenty years later the hedge fund structure had become far more popular; the likes of George Soros and Michael Steinhardt had initiated their own hedge funds and there were around 140 other nascent funds in existence. Now in 2008 hedge funds number in the thousands with global assets of around US$2.7 trillion and the biggest of them are located in the US. The US holds the worlds largest and oldest hedge fund rms and with that the lions share of the global hedge fund assets. By way of illustration, the Connecticut-based rm, Viking Global Investors, sits at the bottom of the US50 with assets under management of US$9bn. A European rm managing that amount of money would have occupied fourteenth position at the time THFJ published the last edition of its EUROPE50, and an Asian rm managing that amount of money would have occupied rst position at the time THFJ published the last edition of its ASIA25. A sure sign of the difference in scale. The rm occupying the top slot, JPMorgan Asset Management, has grown its assets in the last six months by just over US$3.5bn. This is a common theme amongst the top players in the US. Despite difcult market conditions the top rms have grown their assets signicantly. Bridgewater Associates has held its position as the worlds second largest hedge fund manager and grown its asset base in the last six months by an astounding US$7bn, while D.E. Shaw Group and Paulson & Company have grown their AUM by US$5bn and US$6bn respectively, over the same period.
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However, where there is gain, there is pain. This has been a particularly turbulent year across the entire nancial sector and hedge fund managers have not escaped unscathed. A lack of credit and weakening stock markets have hurt many rms. The most notable in the US50 is Atticus Capital. Tim Baraketts activist funds concentrated positions in nancials, notably NYSE Euronext and Deutsche Borse, have brought about an estimated loss of assets to the tune of US$6bn in this calendar year to bring their AUM to approximately US$14bn.

There are entrants in the US50 from the West Coast. Farallon Capital Management (US$33bn), the San Francisco-based manager, occupies sixth position, whilst in twenty-fth position sits Californian rm, Canyon Capital Advisors (US$14.265bn), based in Beverley Hills. However, it will be clear to the reader that the epicentre for hedge funds in the USA remains the nancial powerhouses of the North East. Firms just failing to make the cut include Silver Point Capital (position fty-one) with approximately US$8.7bn, Glenview Capital Management (US$8.5bn) and Cantillon Capital Management (US$8.394bn). As with previous rankings THFJ has sourced information directly from managers, where possible. In cases where rms did not wish to reveal information THFJ has had to create an estimate through information gathered from independent sources. Estimated gures are noted (est.) in the ranking. As many of THFJs readers will be aware, the legal framework in the US is far more stringent for hedge funds in terms of what information they can and cannot provide. US hedge funds are under the Security and Exchange Commissions microscope and many of the managers contacted were very concerned not to do anything that could be construed as solicitation, so whilst rms were prepared, on the whole, to share their AUM gures with THFJ, they were far more reluctant to provide information on fund names, strategies and portfolio managers. THFJ has sourced this information, where provided, from other sources. The hedge fund giants in the US have often been the industrys trailblazers. Names like Steinhardt, Soros, Tudor-Jones and Robertson were the rst to push back the boundaries and increase the visibility of the industry and in their footsteps came the likes of Grifn, Paulson, Mindich and Och. The US industry has witnessed considerable growth in recent years. But the growth in assets managed by the big US rms over the course of the rst half of 2008 has been exceptional given the challenging market conditions. As at 30 June 2008 the rms that make up the US50 managed in aggregate US$859.9bn. At the beginning of 2008 that aggregate gure stood at US$818.3bn. A growth of US$40bn in just six months is a testament not only to the ability of these managers but also an indication of a ight to quality of the type we are seeing elsewhere in the industry. THFJ

This has been a particularly turbulent year across the entire financial sector and hedge fund managers have not escaped unscathed
Other big players who have felt the pinch are Goldman Sachs Asset Management and Renaissance Technologies Corporation, which lost US$2.3bn and US$3.8bn respectively. However, it is important to note two factors. First, that in general, the hedge fund industry has largely mitigated its losses. Other parts of the asset management industry have suffered far more at the hands of the markets in the same space of time. Second, the losses of hedge funds are exacerbated by redemptions. Investors, displeased with underperformance can, and do, pull out their cash causing AUM gures to plummet. So a drop in assets is not necessarily a fair representation of a managers investment performance. Geographically, US hedge funds are predominantly based in New York, the nancial powerhouse of the US. NYC is home to rms managing US$509.8bn which equates to just over 59% of the aggregate AUM of the US50 rms. The next largest gatherings are in Greenwich, Connecticut and Boston, Massachusetts, which when combined account for a further 13.6% (US$117bn) of the aggregate AUM of the US50 rms.

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01.

JPMorgan Asset Management

Principal Fund(s) Asia Opportunities Fund Manager(s) Not disclosed Fund Strategy Long/Short Equity Founders/Principals Not disclosed

AUM (30 Jun 08) US$48.1bn JPMorgan AM US$21.5bn Highbridge Capital Corp US$26.6bn Location New York, NY

Highbridge Capital Corporation

Not disclosed

Long/Short Equity

Not disclosed

02.

Bridgewater Associates
Principal Fund(s) Pure Alpha All Weather Fund Manager(s) Not disclosed Fund Strategy Multi-strategy Global Macro Founders/Principals Raymond Thomas Dalio

AUM (30 Jun 08) US$43.0bn

Location Westport, CT

03.

DE Shaw Group
Principal Fund(s) D. E. Shaw Composite Oculus Fund Fund Manager(s) Eric Wepsic & Gaudio Dinning & Anne Dinning Fund Strategy Multi-strategy Global Macro Founders/Principals David E. Shaw

AUM (30 Jun 08) US$37.1bn

Location New York, NY

04.

Paulson & Co
Principal Fund(s) Paulson Credit Opportunities Paulson Credit Opportunities II Paulson Advantage Paulson Advantage Plus Paulson Partners Fund Manager(s) John Paulson John Paulson John Paulson John Paulson John Paulson Fund Strategy Credit Credit Multi-Strategy Multi-Strategy Merger Arbitrage Founders/Principals John Paulson

AUM (30 Jun 08) US$35.0bn

Location New York, NY

05.

Och-Ziff Capital Management

Principal Fund(s) Master Fund Fund Manager(s) Not disclosed Fund Strategy Not disclosed Founders/Principals Daniel Och

AUM (30 Jun 08) US$33.3bn

Location New York, NY

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06.

Farallon Capital Management

Principal Fund(s) Farallon Capital Offshore Farallon Capital Onshore Fund Manager(s) Not disclosed Fund Strategy Multi-strategy Multi-strategy Founders/Principals Thomas Steyer

AUM US$33.0bn (est)

Location San Francisco, CA

07.

Renaissance Technologies Corp

Principal Fund(s) Renaissance Institutional Equities Fund Medallion Renaissance Institutional Futures Fund Fund Manager(s) Not disclosed Fund Strategy Quantative Long/Short Equity Founders/Principals James Simons

AUM (30 Jun 08) US$29.5bn

Location East Setauket, NY

08.

Harbert Management Corporation

Principal Fund(s) Harbinger Capital Partners Fund Harbinger Capital Partners Offshore Fund Harbinger Capital Partners Special Situation Fund Fund Manager(s) Philip Falcone Fund Strategy Distressed Debt Distressed Debt Event Driven Founders/Principals Philip Falcone Harbert Management Corporation

AUM (30 Jun 08) US$27.0bn

Location New York, San Francisco

09.

Goldman Sachs Asset Management

Principal Fund(s) GS Emerging Markets Opportunities Fund GS Global Alpha Fund Fund Manager(s) Not disclosed Fund Strategy Not disclosed Founders/Principals Not disclosed

AUM (30 Jun 08) US$26.9bn

Location New York, NY

10.

Avenue Capital Group

Principal Fund(s) Asia International Europe International Avenue International Fund Manager(s) Not disclosed Fund Strategy Distressed Debt Founders/Principals Marc Lasry Sonia Gardner

AUM (30 Jun 08) US$20.45bn

Location New York, NY

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11.

Angelo, Gordon, Co
Principal Fund(s) Raphael II Fund Manager(s) Not disclosed Fund Strategy Multi-strategy Founders/Principals John Angelo Michael Gordon

AUM (30 Jun 08) US$20.0bn

Location New York, NY

12.

Fortress Investment Group

Principal Fund(s) Drawbridge Global Macro Drawbridge Special Opportunities Fund Manager(s) Not disclosed Fund Strategy Global Macro Event Driven Founders/Principals Wesley Edens Robert Kauffman Randal Nardone Michael Novogratz Peter Briger

AUM (30 Jun 08) US$18.1bn

Location New York, NY

13.

Citadel Investment Group

Principal Fund(s) Kensington Global Strategies Wellington Partners Fund Manager(s) Not disclosed Fund Strategy Multi-Strategy Multi-Strategy Founders/Principals Ken Griffin

AUM (30 Jun 08) US$17.5bn

Location Chicago, IL

14.

Tudor Investment Corporation

Principal Fund(s) Raptor Global Fund Tudor BVI Global Fund Tudor Tensor Fund Fund Manager(s) James Palotta Paul Tudor-Jones Steve Evans Fund Strategy Long/Short Equity Global Macro Systematic Global Macro Founders/Principals Paul Tudor-Jones

AUM (30 Jun 08) US$17.4bn

Location Greenwich, CT

15.

Moore Capital Management

Principal Fund(s) Moore Global Investment Fund Moore Global Fixed Income Fund Moore Emerging Market Fund Remington Investment Strategies Moore Credit Fund Manager(s) Louis Moore Bacon Louis Moore Bacon Louis Moore Bacon Fund Strategy Global Macro Fixed Income Global Macro Long/Short Equity Credit Founders/Principals Louis Moore Bacon

AUM (30 Jun 08) US$17.4bn (est)

Location New York, NY

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16.

Soros Fund Management

Principal Fund(s) Quantum Endowment Fund Fund Manager(s) Not disclosed Fund Strategy Global Macro Founders/Principals George Soros

AUM (30 Jun 08) US$17.0bn

Location New York, NY

17.

TPG-Axon Capital Management

Principal Fund(s) TPG-Axon Capital Fund Manager(s) Not disclosed Fund Strategy Not disclosed Founders/Principals Dinakar Singh Taizo Hasabe Hari Kumar Eric Mandelblatt

AUM (30 Jun 08) US$16.5bn

Location New York, NY

18.

Cerberus Capital Management

Principal Fund(s) Cerberus International Cerberus Partners Styx International Styx Partners Long Horizons Fund Series Two Fund Manager(s) Steve Feinberg Fund Strategy Distressed Debt Founders/Principals Steve Feinberg

AUM (30 Jun 08) US$16.4bn (est)

Location New York, NY

19.

York Capital Management

Principal Fund(s) York Investment York Select York Capital Management York Global Value Partners York Credit Opportunities Fund Manager(s) James Dinan Fund Strategy Event Driven Distressed Debt Multi-strategy Multi-strategy Founders/Principals James Dinan

AUM (30 Jun 08) US$16.37bn

Location New York, NY

20.

QVT Financial
Principal Fund(s) QVT Overseas Fund Manager(s) Dan Gold Fund Strategy Multi-strategy Founders/Principals Dan Gold

AUM (30 Jun 08) US$15.2bn (est)

Location New York, NY

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21.

Perry Capital
Principal Fund(s) Perry Partners International Fund Manager(s) Richard Perry Fund Strategy Multi-strategy Founders/Principals Richard Perry

AUM (30 Jun 08) US$14.9bn (est)

Location New York, NY

22.

FX Concepts
Principal Fund(s) Concepts Multi-strategy Fund GCP Fund Global Financial Markets Fund DMC Fund Fund Manager(s) Not disclosed Fund Strategy CTA/Global Emerging Market Debt CTA/Global Emerging Market Debt CTA/Global Emerging Market Debt CTA/Global Emerging Market Debt Founders/Principals John Taylor

AUM (30 Jun 08) US$14.65bn

Location New York, NY

23.

Stark Investments
Principal Fund(s) Shepherd Investments International Stark Investments Stark Asia Fund Fund Manager(s) Brian Stark & Mike Roth Fund Strategy Multi-strategy Multi-strategy Asia and Emerging Markets Founders/Principals Brian Stark Michael Roth

AUM (30 Jun 08) US$14.452bn

Location St. Francis, WI or Milwaukee

24.

Canyon Capital Advisors

Principal Fund(s) Canyon Value Realization Fund Fund Manager(s) Mitchell Julis & Joshua Friedman Fund Strategy Arbitrage Founders/Principals Joshua Friedman Mitchell Julis Robert Turner

AUM (30 Jun 08) US$14.265bn (est)

Location Beverly Hills, CA

25.

Davidson Kempner Capital Management

Principal Fund(s) Davidson Kempner Distressed Operations, Davidson Kempner Healthcare International Davidson Kempner International Fund Manager(s) Michael Leffell & Anthony Yoseloff Roderick Wong Thomas Kempner & Marvin Davidson Fund Strategy Distressed Debt Long/Short Equity Multi-strategy Founders/Principals Thomas Kempner Marvin Davidson

AUM (30 Jun 08) US$14.1bn (est)

Location New York, NY

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26.

SAC Capital Advisors

Principal Fund(s) SAC Capital Fund Manager(s) Not disclosed Fund Strategy Not disclosed Founders/Principals Steve Cohen

AUM (30 Jun 08) US$14.0bn

Location Stamford, CT

27.

Atticus Capital
Principal Fund(s) European Fund Global Fund Fund Manager(s) Not disclosed Fund Strategy Activist Founders/Principals Tim Barakett David Slager

AUM (30 Jun 08) US$14.0bn (est)

Location New York, NY

28.

Bain Capital
Principal Fund(s) [Brookside Captial Partners] [Sanakty Advisors] Prospect Harbour [Absolute Return Capital Partners] Fund Manager(s) Not disclosed Fund Strategy Not disclosed Founders/Principals William Romney Coleman Andrews Eric Kriss

AUM (30 Jun 08) US$13.3bn (est)

Location Boston, MA

29.

Eton Park Capital Management

Principal Fund(s) Master Fund Eton Park Offshore Eton Park Overseas Fund Fund Manager(s) Not disclosed Fund Strategy Multi-strategy Multi-strategy Multi-strategy Founders/Principals Eric Mindich

AUM (30 Jun 08) US$13.0bn

Location New York, NY

30.

ESL Investments
Principal Fund(s) Not disclosed Fund Manager(s) Not disclosed Fund Strategy Not disclosed Founders/Principals Edward Lampet William Crowley

AUM (30 Jun 08) US$13.0bn (est)

Location Greenwich, CT

IN ASSOCIATION WITH

31.

Millennium Partners
Principal Fund(s) Millennium International/USA Fund Manager(s) Israel Englander Fund Strategy Multi-strategy Founders/Principals Israel Englander

AUM (30 Jun 08) US$12.1bn (est)

Location New York, NY

32.

Caxton Associates
Principal Fund(s) Caxton Global Investment Caxton Equity Growth Caxton Alpha Equity Fund Manager(s) Bruce Kovner Kurt Feuerman Kurt Feuerman Fund Strategy Global Macro Long/Short Equity Directional Diversified Equity Founders/Principals Bruce Kovner

AUM (30 Jun 08) US$12.0bn

Location New York, NY

33.

Adage Capital Management

Principal Fund(s) Not disclosed Fund Manager(s) Not disclosed Fund Strategy Not disclosed Founders/Principals Phill Gross Robert Atchinson

AUM (30 Jun 08) US$12.0bn (est)

Location Boston, MA

34.

Baupost Group
Principal Fund(s) Not disclosed Fund Manager(s) Not disclosed Fund Strategy Not disclosed Founders/Principals Seth Klarman

AUM (30 Jun 08) US$12.0bn (est)

Location Boston, MA

35.

Elliot Management Corp

Principal Fund(s) Elliott International Elliott Associates Fund Manager(s) Not disclosed Fund Strategy Not disclosed Founders/Principals Paul Singer

AUM (30 Jun 08) US$11.6bn (est)

Location New York, NY

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36.

Maverick Capital
Principal Fund(s) Maverick Fund Maverick Levered Fund Manager(s) Lee Ainslie III Fund Strategy Long/Short Equity Long/Short Equity Founders/Principals Lee Ainslie III

AUM (30 Jun 08) US$11.5bn (est)

Location New York, NY

37.

King Street Capital Management

Principal Fund(s) King Street Capital Management Ltd King Street Capital Management LP Fund Manager(s) Not disclosed Fund Strategy Multi-strategy Event Driven Founders/Principals Ottavio Biondi Brian Higgins

AUM (30 Jun 08) US$11.3bn (est)

Location Stamford, CT

38.

Highfields Capital Management

Principal Fund(s) Not disclosed Fund Manager(s) Not disclosed Fund Strategy Not disclosed Founders/Principals Jonathon Jacobson Richard Grubman

AUM (30 Jun 08) US$11.0bn (est)

Location Boston, MA

39.

Marathon Asset Management

Principal Fund(s) Marathon Master Fund Marathon Global Equity Fund Marathon Overseas Fund Marathon Special Opportunity Fund Marathon Structured Finance Fund Fund Manager(s) Louis Hanover Bruce Richards & Louis Hanover Bruce Richards & Louis Hanover Fund Strategy Asia and Emerging Markets Convertible Arbitrage Long/Short Credit Event Driven Distressed Debt Founders/Principals Bruce Richards

AUM (30 Jun 08) US$10.975bn (est)

Location New York, NY

40.

Alliance Bernstein
Principal Fund(s) Bernstein Advanced Value Bernstein Global Diversified Bernstein Global Opportunities Alliance High-Grade Alliance Bernstein Absolute-Return Credit Fund Fund Manager(s) Mark Gordon Fund Strategy Not disclosed Founders/Principals Lewis Sanders Gerald Lieberman

AUM (30 Jun 08) US$10.9bn (est)

Location New York, NY

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41.

Blackrock
Principal Fund(s) Blackrock Small-Cap Energy Hedge Fund Obsidian Fund Galaxite Fund All-Cap Hedge Fund Health Sciences Hedge Fund Fund Manager(s) Dan Rice & Denis Walsh Stu Spodek & Scott Amero Scott Amero Dan Rice & Denis Walsh Erin Xie Fund Strategy Long/Short Equity Fixed Income Relative Value Long/Short Credit Long/Short Equity Long/Short Equity Founders/Principals Laurence Fink

AUM (30 Jun 08) US$10.9bn (est)

Location New York, NY

42.

Black River Asset Management

Principal Fund(s) Black River Capital Fund Manager(s) Not disclosed Fund Strategy Multi-Strategy Founders/Principals Gary Jarrett Eric Larson

AUM (30 Jun 08) US$10.5bn

Location Minnetonka, MN

43.

HBK Capital Management

Principal Fund(s) HBK Master Fund Fund Manager(s) Not disclosed Fund Strategy Multi-strategy Founders/Principals Harlan Korenvaes

AUM (30 Jun 08) US$10.145bn

Location Dallas, TX

44.

Fairfield Greenwich Group

Principal Fund(s) Fairfield Sentry Arlington International Greenwich Sentry Fairfield Dover Fund Fund Manager(s) Walter Noel Fund Strategy Equity Arbitrage Event Driven Long/Short Equity Founders/Principals Walter Noel Jeffrey Tucker Andres Piedrahita

AUM (30 Jun 08) US$10.05bn

Location New York, NY

45.

AQR Capital Management

Principal Fund(s) Not disclosed Fund Manager(s) Not disclosed Fund Strategy Not disclosed Founders/Principals Clifford Asness David Kalliber Robert Krail John Liew

AUM (30 Jun 08) US$10.0bn

Location Greenwich, CT

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46.

Duquesne Capital Management

Principal Fund(s) Windmill Master Fund Duquesne Leveraged Fund Duquesne Unleveraged Fund Fund Manager(s) Stanley Druckenmiller Fund Strategy Distressed Debt Multi-Strategy Multi-Strategy Founders/Principals Stanley Druckenmiller

AUM (30 Jun 08) US$10.0bn (est)

Location Pittsburgh, PA [or] New York, NY

47.

Wellington Capital Management Co

Principal Fund(s) Not disclosed Fund Manager(s) Not disclosed Fund Strategy Not disclosed Founders/Principals Perry Traquina

AUM (30 Jun 08) US$10.0bn (est)

Location Boston, MA

48.

Mariner Investment Group

Principal Fund(s) Mariner Partner Mariner Atlantic Caspian Capital Partners Mariner Voyager Mariner Opportunities Fund Manager(s) Not disclosed Fund Strategy Not disclosed Founders/Principals Stuart Boesky

AUM (30 Jun 08) US$9.857bn

Location Harrison, NY

49.

Lone Pine Capital

Principal Fund(s) Lone Cypress Lone Cedar Fund Manager(s) Stephen Mandel Fund Strategy Long/Short Equity Long/Short Equity Founders/Principals Stephen Mandel

AUM (30 Jun 08) US$9.2bn

Location Greenwich, CT

50.

Viking Global Investors

Principal Fund(s) Viking Global Equities III Fund Manager(s) Andreas Halvorsen, David Ott, Brian Olson Fund Strategy Long/Short Equity Founders/Principals Andreas Halvorsen David Ott Brian Olson

AUM (30 Jun 08) US$9.0bn (est)

Location Greenwich, CT

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