Institutional Investor's Alpha Magazine - May 2008 - (Page 50)

Capital Management, each controlled $36 billion in assets as of December 31, 2007, 81 percent of what JPMorgan Asset Management held. For Bridgewater and Farallon, the numbers are an increase over 2006 of almost $5.8 billion and $9.8 billion, respectively, partly from returns but mostly from new money. Such growth suggests a quantum dynamic at work, and this year’s list sets several records reminiscent of our recently released ranking of the best-paid hedge fund managers (see Alpha, April 2008). The overall numbers behind the 2008 Hedge Fund 100 are generally up and in many cases unprecedented. The ten biggest hedge funds control $324 billion, up 29 percent from 2007 and more than the combined capital of the Hedge Fund 100 ﬁrms at the end of 2001. The total assets under management for the 100 ﬁrms this year is $1.35 trillion, a 35 percent increase over last year’s total. The Hedge Fund 100’s 75 percent share of all hedge fund assets is a record too, up 6 percentage points over 2007. Performance didn’t necessarily depend on size. Though some of the biggest Hedge Fund 100 ﬁrms logged some of the best returns, some smaller ones did just as well or better. The $7 billion, No. 93–ranked, New York–based Blue Ridge Capital, managed by John Grifﬁn, delivered a 65 percent return. Chris Shumway’s $6.6 billion Greenwich, Connecticut–based Shumway Capital Partners (No. 99) Alpha’s Hedge Fund 100 RANK 2008 2007 FIRM/FUND NAME(S) 1 1 JPMorgan Asset Mgmt (New York, NY) JPMorgan Asset Mgmt (New York, NY) Highbridge Capital Mgmt (New York, NY) Asia Opportunities Long-Short Equity 3 Bridgewater Associates (Westport, CT) Pure Alpha Strategy 5 Farallon Capital Mgmt (San Francisco, CA) 6 Renaissance Technologies Corp. (East Setauket, NY) Institutional Equities Fund Medallion Institutional Futures Fund 7 Och-Ziff Capital Mgmt Group (New York, NY) Master Fund 4 D.E. Shaw Group (New York, NY) 2 Goldman Sachs Asset Mgmt (New York, NY) 69 Paulson & Co. (New York, NY) Advantage Plus Credit Opportunities Advantage Enhanced Paulson International 8 Barclays Global Investors (London, U.K.) Equity long/short Global macro and currency Fixed-income long/short 11 GLG Partners (London, U.K.) 22 Brevan Howard Asset Mgmt (London, U.K.) 9 Man Investments (London, U.K.) AHL Diversiﬁed AHL Alpha Athena Guaranteed Futures 16 Atticus Capital (New York, NY) European Global 18 Citadel Investment Group (Chicago, IL) Kensington Global Strategies Fund Wellington Firm/fund Return capital net of ($ millions) fees (%) $44,700 16,900 27,800 19 % 40 36,000 36,000 36,000 33,300 22,000 7,500 3,800 33,200 32,240 29,206 28,979 5,589 4,264 3,552 3,352 2,727 26,227 12,765 9,892 3,570 23,900 21,000 * 20,900 2 2,890 2 265 2 109 2 20,000 11 14.8 –0.2 73 16 RANK 2008 2007 FIRM/FUND NAME(S) 15 14 Lansdowne Partners (London, U.K.) U.K. Equity Fund Global Financials Fund European Equity Fund – B Class European Long Only Fund Macro Fund 94 Harbert Mgmt Corp. (Birmingham, AL) Harbinger Capital Partners Offshore Fund I Harbinger Capital Partners Special Situations Offshore Fund Harbinger Capital Partners Fund I Harbinger Capital Partners Special Situations Fund 47 Lone Pine Capital (Greenwich, CT) 25 Soros Fund Mgmt (New York, NY) Quantum Endowment Fund 32 Avenue Capital Group (New York, NY) Asia International Europe International Avenue International 44 BlueBay Asset Mgmt (London, U.K.) 19 Cerberus Capital Mgmt (New York, NY) Cerberus International Styx Cerberus Partners 33 Fortress Investment Group (New York, NY) 12 Tudor Investment Corp. (Greenwich, CT) BVI Global Portfolio Raptor Global Portfolio Tensor Portfolio Futures Fund 28 SAC Capital Advisors (Stamford, CT) 27 Sloane Robinson (London, U.K.) Global Fund (Class G) Emerging Market Global Fund (Class B) Asia Global Fund (Class C) International Phoenicia (Class A) Phoenicia Phoenicia (Class B) Carthaginian long-only funds. 4 Excludes $10.4 billion invested in private-equity-format funds; does not include Firm/fund Return capital net of ($ millions) fees (%) $18,903 7,542 3,837 2,748 1,738 771 18,116 11,685 2,383 2,363 1,479 18,000 17,000 17,000 16,500 31.73% 32.9 4.99 0.95 26.44 116.06 170.24 114.13 170.38 57 3 32 9 11 10 16,400 16,400 4 7,800 3,400 3,000 16,400 16,069 9,423 5,702 624 270 16,000 15,100 2,700 2,500 1,900 1,500 1,500 2 2 4 5 6 7 8 11.5 12.8 1 17 18 19 158.56 589.67 100.14 116.47 51.7 20 20 9 16.4 8 16.1 10 11 12 20 23 19.7 14.4 13.6 28 25.4 32.51 31.68 34.19 13 24 25 6.82 * –7.99 * 6.36 6.17 13 33.8 30.4 40.7 41.9 35.5 13 20,000 Only the ﬁve biggest funds managed by each ﬁrm are shown in the table. Italics indicate that a composite is shown or that multiple funds have been combined. Assets are as of December 31, 2007, and returns are for the 12 months ended December 31, 2007, unless otherwise indicated. * Alpha estimate. 1 Composite return is for absolute-return strategies. 2 As of September 30, 2007. 3 Composite return is for hedge fund strategies and does not include returns for $750 million in equity capital in Ableco, a corporation doing loan originations. 50 • INSTITUTIONAL INVESTOR’S ALPHA • MAY 2008 http://www.nxtbook.com/nxtbooks/ii/alpha0408/

Table of Contents Feed for the Digital Edition of Institutional Investor's Alpha Magazine - May 2008

Institutional Investor's Alpha Magazine - May 2008 Contents Letter from the Editor Longs & Shorts Pension Corner: Send in the Clones The Good Guys: Outside the Box Cover Story: Welcome to Oz Interview: The Tipping Point Regulation: When Sentinels Go Astray Strategies: Taking Credit Research Center: The Hedge Fund 100 Book Excerpt: Shoot the Messenger Alpha Bytes: VaR Enough? Unhedged: Commentary: Not Your Father's Activist

Institutional Investor's Alpha Magazine - May 2008

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