Despite appearances to the contrary, 2013 was not a great year to be a hedge fund manager. Sure, the U.S. stock market surged 30 percent, but much of that gain was driven by hot momentum stocks in the Internet, technology, media and health care sectors — precisely the type of securities that many hedge fund managers like to sell short because the underlying fundamentals often don’t back up their inflated valuations.
As a result, some managers — especially the so-called Tiger Cubs, who started their careers at Julian Robertson Jr.’s famed Tiger Management Corp. — racked up gains of 40 to 50 percent on the long side but took a beating on the short side, leading them to post returns well below the market averages in their long-short funds. So it took more than simply riding the stock market for hedge fund managers to earn an outsize haul in 2013. A number of the managers who excelled last year — and therefore top Alpha’s 13th annual Rich List ranking of the hedge fund industry’s 25 highest earners — shrewdly found opportunities in sectors and markets that were not widely targeted by the momentum set.
The rich list: the highest-earning hedge fund managers of the past year
The days were dark post 2008. Fast forward to 2014, however, and the latest figures paint a significantly rosier picture for the hedge fund industry.
Big funds get bigger as hedge fund market recovers – FT.com.
New York’s not only got the Yankees and the Empire State Building — it’s also home to the hedge fund industry’s $1 Billion Club.
In all, 505 of the 4,621 active hedge fund managers worldwide boast $1 billion or more in assets under management. And New York has 174 of these funds, representing a combined management total of nearly $1 trillion, reports Preqin, a London-based research firm that tracks the industry.
London is home to the second-highest number of $1 billion-plus managers, with 80.
Connecticut ranks third, with 80 of the giant funds. But the Nutmeg State holds second place in terms of capital managed by firms with a combined total of $400 billion in assets under management, Preqin says.
Where the biggest hedge funds are | America’s Markets.