Institutional Investor's Alpha Magazine - May 2008 - (Page 53)

The Hedge Fund 100 much better known and part of the mainstream. Investors in Europe are investing in funds that ﬁve years ago they wouldn’t have touched. You see exactly the same thing going on in Asia, but a few years behind [Europe].” Indeed, with the exception of four ﬁrms — Tokyo-based Sparks Group Co. (No. 72); Paris-based ADI Gestion (No. 73); UBS’s Alternative and Quantitative Investments (No. 76) in Zurich; and Hamilton, Bermuda–based Orbis Investment Management (No. 91) — the Hedge Fund 100 this year is made up entirely of U.S. and U.K. ﬁrms. The standard-bearer for the U.K. hedge fund boom is London-based Brevan Howard Asset Management, which jumps from No. 22 to No. 11 by increasing its assets from $12.1 billion to $21 billion, largely — like Highbridge — owing to a huge infusion of institutional capital, say people familiar with the manager. The ﬁrm, which, unlike U.S. competitors, is not bound by laws that keep the lid on marketing, says in its marketing material that its exposure “is pre dominantly through global ﬁ xed-income and foreign exchange, employing a combination of global macro and relative-value trading strategies.” Almost all of the ﬁrm’s assets are in the Brevan Howard Master Fund. The ﬁrm made some of its assets public RANK 2008 2007 FIRM/FUND NAME(S) 74 76 — Coventry Capital (Chicago, IL) 71 Alternative and Quantitative Investments (UBS) (Zurich, Switzerland) O’Connor (Chicago, IL) 79 Polygon Investment Mgmt (London, U.K.) Global Opportunities Master Fund Tetragon Financial Group — Magnetar Capital (New York, NY) 80 Jana Partners (New York, NY) Jana Partners Strategy Piranha Strategy Nirvana Strategy 51 GMO (Boston, MA) 87 Ospraie Mgmt (New York, NY) — Toscafund Asset Mgmt (London, U.K.) — Icahn Capital (New York, NY) Icahn Fund Icahn Partners Icahn Fund II Icahn Fund III 68 Convexity Capital Mgmt (Boston, MA) 84 Satellite Asset Mgmt (New York, NY) Overseas Fund Credit Opportunities Fund 96 Taconic Capital Advisors (New York, NY) 89 Spinnaker Capital (London, U.K.) Global Opportunity Fund Global Emerging Markets Fund Global Strategic Fund 100 Sandell Asset Mgmt (New York, NY) Castlerigg International Castlerigg Partners Castlerigg Global Select 74 Galleon Group (New York, NY) Diversiﬁed Healthcare Offshore Pan-Asia Technology Offshore Firm/fund Return capital net of ($ millions) fees (%) $8,700 8,632 8,632 8,500 7,200 1,300 8,300 7 8,036 6,774 1,049 213 8,000 * 8,000 8,000 * 7,965 15 3,461 2,991 1,097 416 7,900 7,557 3,450 771 7,500 7,487 3,242 2,738 1,506 7,254 5,877 721 656 7,200 * RANK 2008 2007 FIRM/FUND NAME(S) 89 91 99 RAB Capital (London, U.K.) 81 Orbis Investment Mgmt (Hamilton, Bermuda) Optimal (USD) Fund Leveraged (USD) Fund Optimal (Euro) Fund Leveraged (Yen) Fund Leveraged (Euro) Fund — Chilton Investment Co. (New York, NY) — Blue Ridge Capital (New York, NY) 65 Pequot Capital Mgmt (Westport, CT) Core Global Offshore Fund 62 Tontine Associates (Greenwich, CT) Capital Partners Financial Partners Tontine Partners 72 Kingdon Capital Mgmt (New York, NY) M. Kingdon Offshore Kingdon Associates Kingdon Family Partnership 91 Appaloosa Mgmt (Chatham, NJ) — Amber Capital Investment Mgmt (New York, NY) — Shumway Capital Partners (Greenwich, CT) — Mellon Capital Mgmt Corp. (San Francisco, CA) Offshore AlphaAcess Master Fund Offshore Global Opportunity Master Fund Offshore Currency Opportunity Master Fund Offshore Credit Opportunity Master Fund Offshore Global Equity Market Neutral Master Fund Firm/fund Return capital net of ($ millions) fees (%) $7,200 7,140 16 4,858 1,090 809 533 317 7,100 7,000 7,000 7,000 * 43 * –58 * 13 * 6,871 4,874 1,733 264 6,800 6,700 6,600 6,252 1,696 1,295 175 52 39 14.5 14.3 13.2 8.9 7.0 % 1.6 2.8 –3.2 0.4 65 35 77 78 79 25 % 7.6 12 11.9 13 15.8 14 92 93 93 93 80 80 80 83 96 84 85 97 98 7.28 * 5.00 * 99 100 51 86 87 21.38 21.26 20.56 –19.55 –8.02 –8.36 5.09 17 1.02 18 88 89 12.2 * 18.1 * 27.8 * 21.2 * 7 As of January 1, 2008. 12 Performance is for Jana Partners, LP. 13 Performance is for Jana Piranha Fund, LP. 14 Performance is for Jana Nirvana Fund, LP, since 16 Some Orbis Investment Management funds invest in underlying funds and are not included in ﬁrm capital to avoid double-counting. 17 Since January 3, 2007, inception. 18 Since June 1, 2007, inception. April 1, 2007, inception. 15 Includes committed capital. How the Ranking Was Compiled In Alpha’s 2008 Hedge Fund 100, we provide each manager’s total assets under management as of December 31, 2007, unless otherwise indicated. Where possible, we also show assets at the individual fund level, with 2007 net returns through year-end, for the ﬁve biggest funds run by a ﬁrm. Asset totals reﬂect internally run, single-manager hedge funds and separate accounts; they exclude funds of funds, overlay accounts, funds managed by third parties, mutual funds and traditional long-only money, dynamic money market funds, assets in collateralized debt and bond obligations, private equity and venture capital, and assets in private-equity-style vehicles that issue capital calls. We gathered data through questionnaires completed by hedge fund managers, supplemented by extensive Alpha staff research. MAY 2008 • INSTITUTIONAL INVESTOR’S ALPHA • 53

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

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.