GLOBAL BILLION DOLLAR CLUB: Industry titans near all-time asset high

September 30, 2013  

DATA INCLUDES: where are Billion Dollar Managers located

AMAL ROBLEH, AMERICAS DATA AND RESEARCH MANAGER, HEDGEFUND INTELLIGENCE

Please click here for the full list of billion dollar club firms

The biggest players in the global hedge fund industry are continuing to get bigger and nearing their all-time peak assets, indicating that the turmoil following the financial crisis might be at an end.

According to the latest statistics for the Global Billion Dollar Club - the elite group of firms that manage $1 billion or more in hedge fund assets - the 389 current members of the Club managed assets of $2.04 trillion at the mid-year point. That is a significant increase from the 367 firms at the start of the year that managed $1.925 trillion. Collectively, the Club has seen a rise in assets of 5.97%, slightly ahead of the overall growth rate of 5.84% for the broader industry and indeed the force behind most of that increase.

If the current rate of increase remains the same, the Club should surpass its all-time high of $2.161 trillion, which it achieved at mid-year 2008.

The Global Billion Dollar Club continues to account for the majority of the total assets managed in the industry. Its share of assets has remained steady at 87% in the first half of the year. Consistent with previous years, the bulk of the growth is concentrated in the Super League of firms that run assets of $5 billion or more. This elite group edged up slightly from 107 firms to 110 in the past six months. Collectively, these firms manage $1.427 trillion, up from $1.36 trillion at the start of the year.

The majority of new entrants to the Club this year have been in the US, where the number of firms in New York, for instance, is up from 157 to 175. The East Coast hedge fund hub accounts for more than 45% of all Global Billion Dollar Club assets. Despite placing below California in terms of members, Connecticut having 24 versus California's 28, fourth-placed Connecticut now manages just over $206 billion of the total Club assets.

London remains in second place overall, with 57 firms. Despite assets holding steady at $267 billion, the city's share of total Club assets fell during the year from 13.88% to 13.10%.

Asia, meanwhile, has reversed its downward trajectory with both assets in the region and Club members increasing. The number of members based in Hong Kong jumped from 12 to 17, and the city is now in fifth place accounting for $28 billion of total Club assets. Overall assets managed from the region grew from just over $49 billion to $65 billion and the proportion of Club assets managed in Asia-Pacific increased from 2.58% to 3.19%.

The Global Billion Dollar Club - where the managers are located 

Location No of firms AUM $bn Jul 2013 % of total assets % of total firms
New York, USA 175 922.78 45.23% 42.79%
London, UK 57 267.33 13.10% 13.94%
California, USA 28 123.26 6.04% 6.85%
Connecticut, USA 24 206.35 10.12% 5.87%
Hong Kong 17 27.59 1.35% 4.16%
Massachusetts, USA 15 124.85 6.12% 3.67%
Singapore 9 16.33 0.80% 2.20%
Illinois, USA 8 36.38 1.78% 1.96%
New Jersey, USA 6 30.36 1.49% 1.47%
Texas, USA 6 22.05 1.08% 1.47%
Sydney, Australia 5 19.24 0.94% 1.22%
Rio de Janiero, Brazil 5 10.41 0.51% 1.22%
Minnesota, USA 4 16.31 0.80% 0.98%
Paris, France 4 15.64 0.77% 0.98%
Stockholm, Sweden 3 28.13 1.38% 0.73%
Florida, USA 3 7.77 0.38% 0.73%
Toronto, Canada 3 6.01 0.29% 0.73%
Pennsylvania, USA 3 4.99 0.24% 0.73%
Geneva, Switzerland 3 3.64 0.18% 0.73%
Virginia, USA 2 7.98 0.39% 0.49%
Wisconsin, USA 2 3.34 0.16% 0.49%
Colorado, USA 2 3.27 0.16% 0.49%
Moscow, Russia 2 3.19 0.16% 0.49%
Melbourne, Australia 2 1.87 0.09% 0.49%
Other 21 130.92 6.42% 5.13%
Total 389* 2,039.99 100% 100%

Source: HedgeFund Intelligence 
*Number of firms de-duplicated to account for groups which run $1bn-plus funds from more 
than one location



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