The Top 10 Largest Hedge Funds in the World
In the financial press, hedge funds are given ink for a variety of reasons. Several hedge fund managers like George Soros and David Einhorn, have consistently earned investors yearly returns north of 20 percent. Conversely, some of the greatest financial follies have also occurred in the hedge fund industry, whether it be the collapse of Long Term Capital Management or the Ponzi-scheme fallout of Bernie Madoff’s Ascot Partners. Though they are usually perceived as unregulated, risky investment vehicles for the most affluent investors, the truth is a little more complicated. A hedge fund is a type of investment fund that is actively managed, in the hope that higher than market returns can be realized. Usually open to a limited number of investors, these funds typically have net worth requirements greater than $1 million for investors. Currently, it is estimated that the world’s 200 largest hedge funds oversee nearly $700 billion in assets, with some funds obviously being much larger than others. The slideshow below gives readers insight into just how enormous these funds really are, and how their managers use an array of strategies to beat the market.
For a more detailed look at the history of hedge funds and the strategies they employ, check out WealthLift’s Hedge Fund Educational Series here.
Disclosure: The author has no holdings in the stocks mentioned in this article and has no plans to initiate any positions within the next 72 hours. He does, however, have the intention of rating these stocks on WealthLift.com, a social media website where investment ideas are shared openly and free.