Top 20 Largest Hedge Funds in Connecticut 2017

Top 20 Hedge Funds in Connecticut -2017

Below is a list of the largest hedge funds in Connecticut for 2017:

	Fund Name	City	AUM ($ million)	Strategy
1	AQR Capital Management	Greenwich	243982	Multi Strategy
2	Bridgewater Associates	Westport	239323	Long/Short
3	Viking Global Investors	Greenwich	43378	Global Macro
4	Tudor Investment Corporation	Greenwich	39662	Multi Strategy
5	Lone Pine Capital	Greenwich	33157	Long/Short
6	Spectrum Asset Management	Stamford	16509	Fixed Income
7	UBS Hedge Fund Solutions	Stamford	14550	Equity
8	Paloma Partners	Greenwich	14022
9	Silver Point Capital	Greenwich	12345	Multi Strategy
10	K2 Advisors	Stamford	9808	Fund of Funds

Data as of June 1, 2017

View the full list of top 20 hedge funds in Connecticut for 2017


The 3 largest hedge funds in Connecticut are AQR Capital Management, Bridgewater Associates, and Viking Global Investors.

6 of the 10 largest hedge funds in CT are based in Greenwich

The 10 biggest hedge funds in Connecticut have a combined $667 billion in assets under management.

Why Hedge Funds are NOT "Too Big To Fail"

Relative to Other Financial Institutions, Hedge Funds are Actually "Too Small NOT To Fail"

Timothy Geithner and other public officials have argued that large hedge funds are "too big to fail". Their collapse, they argue, could have widespread systemic impacts on the global financial system. However, their are legitimate questions as to whether the argument that hedge funds are too big to fail has any credible weight. In fact, relative to their regulated counterparts such as banking and insurance giants, hedge funds are actually too small not to fail.

Why Hedge Funds Are NOT "To Big to Fail":

1. The largest hedge fund (Bridgewater at under $40 billion in AUM) has less than 2% of the assets of Citigroup (Citi had 2008 assets of $2.2 trillion).

• The entire hedge fund industry is estimated at about $1 trillion. By comparison, Citi had $1.1 trillion, in off-balance sheet assets alone. These off-balance SIVs often consisted of now toxic CDOs and other structured debt pools.

2. Hedge Funds Actually Operate with Less Leverage than Most Banks

• Here are the 2008 leverage ratios for the largest US Banks: Citigroup (19.2x), JP Morgan (12.7x), Wells Fargo (12x), Bank od America (11.7X).

• According to the Merrill Lynch Hedge Fund Manager Survey, 70% of hedge funds operated with less than 2x leverage in 2007. And 2007 was the most levered hedge funds had been in almost 10 years.

• Currently, the average hedge fund has net leverage of less than 1.

3. Hedge Fund Collapse Does Not Markedly Effect Broader Markets

• While a hedge fund collapse may have some detrimental effects on the financial markets in which the fund(s) operated, it is not likely to lead to widespread economic malaise.

• By contrast, the failure of a large bank leads to tens of thousands of job losses (at least 35,000 from B of A a lone), massive decreases in consumer and business lending, and general liquidity issues.

4. Hedge Fund Failures are Just a Blip Compared to Regulated Financial Institutions

• AIG losses in 2008 ($98 billion) were greater than all the hedge fund failures in history.

• At the time of Lehman's bankruptcy, it still declared $639 billion in assets. This represents assets equal to more than half of the entire hedge fund industry and more than 10x larger than Madoff's fund. If Lehman can be permitted to fail, what logical rationale could be proposed for bailing out a hedge fund?

Hedge funds are not too big to fail. The entire industry represents fewer assets than individual global banks. Additionally, protecting hedge funds from failure creates an unnecessary moral hazard. Funds might be encouraged to take more risk, particularly risks with systemic impact, if they feel their size and breadth makes them impervious to failure.

Unfortunately, we have recently created such a moral hazard with the bailout of banks. However, the impact of moral hazard was deemed modest in comparision to the potential failure of the entire economic system. Given the much slighter impact posed by hedge funds, considering hedge funds to be too big to fail carries negative implications as well.

This is not to say hedge fund regulation can't be helpful; it can. However, considering hedge funds to be as dangerous as massive financial institutions is purely asinine.

Bridgewater Associates Firm Profile

Bridgewater Associates

Bridgewater Associates is a global investment manager that manages approximately $150 billion in assets with about $45 billion invested in the firm' hedge fund strategy. This strategy is labeled "Pure Alpha," Bridgewater is one of the largest hedge funds in the worl. Bridgewater manages portfolios for more than 300 clients from the United States and 19 other countries. Most of Bridgewater’s clients are institutional investors including banks, governments, and pensions. Bridgewater has 650 employees and is based in Westport, Connecticut.

Some of Bridgewater’s hedge fund innovations of the last 30 years include currency overlay management in the 1980s, the separation of alpha and beta in the 1990s and inflation-linked bond management in the mid 1990s.

Bridgewater’s key investment offering is “pure alpha” which incorporates all of their proprietary trading strategies into one diversified fund. These strategies include currency, fixed income, equity and commodity trading.

Bridgewater Associates’ Founder, CIO, and President Ray Dalio on Bridgewater employees:
People who work at Bridgewater have been selected because they have been high achievers (i.e. exceeded the standards of the general population). Obviously, everyone here has high standards for their own achievement, but it is not likely that individuals hold themselves to standards that they might not be able to achieve. The philosophy of Bridgewater is such that individuals are held to the highest possible standards, and the goal is to get people to achieve far beyond their previous standards and expectations. You have to understand that Bridgewater is not about plodding along at some kind of moderate standard; it is about working like hell to reach a standard that is extraordinarily high, and then getting the satisfaction that comes with that kind of super-achievement.

Bridgewater Associates AUM: $45 billion

Bridgewater Employees: 650

Key Bridgewater People:
CEO: Ray Dalio

Bridgewater Address:
Bridgewater Associates
One Glendinning Place
Westport, CT 06880

Bridgewater Associates Phone:
203.226.3030

Top Performing Global Non-Event Hedge Funds

Top performing global non-event hedge funds for the quarter ending Dec 2007

Global non-trend funds

Balestra Capital Partners

Clarium

Quantitative Global Fund (3X)

LJM Managed Futures Account

GMO US Tactical Opp. Fund

AlphaQuest Short Term Fund

MLM Macro Peak Partners Offshore

Vega Select Opportunities Fund

Rogers Raw Materials Fund

Wimbledon Fund TT

Quantitative Global Program

LCM Global Interest Rate HF Agg. Pr.

Bridgewater All Weather Fund AUD

Maple Leaf Macro Volatility Fund

Absolute Plus Mgmt. Hedged Gl Comm

Rivoli International Fund EUR

DKR Quantitative Strategies Fund

Anglian Commodities

Pharo Macro Fund

DB Noetic Global Diversified Trading

Torrey Pines

JF Asia Absolute Return Fund USD

Weavering Fixed Income

Top 50 Hedge Funds in US

Below is a list of the top 50 hedge fund groups in the US. These are the largest US hedge funds ranked by assets under management (Jan 07 AUM).

JPMorgan Asset Management New York NY
Goldman Sachs Asset Management New York NY
Bridgewater Associates Westport CT
D. E. Shaw Group New York NY 2
Farallon Capital Management San Francisco CA
Renaissance Technologies Corp. East Setauket NY
Och-Ziff Capital Management New York NY
Cerberus Capital Management New York NY
Barclays Global Investors* San Francisco CA
ESL Investments** Greenwich CT
Citigroup Alternative Investments New York NY
Tudor Investment Corporation Greenwich CT
Caxton Associates New York NY
Atticus Capital New York NY
Campbell & Co. Towson MD
Citadel Investment Group Chicago IL
Moore Capital Management New York NY
Avenue Capital Group New York NY
Perry Capital New York NY
SAC Capital Advisors Stamford CT
Soros Fund Management New York NY
HBK Investments Dallas TX
FX Concepts New York NY
Angelo, Gordon & Co. New York NY
Fairfield Greenwich Group New York NY
Stark Investments* St. Francis WI
Davidson Kempner Advisers** New York NY
Highfields Capital Management Boston MA
Wellington Management Co.** Boston MA
Canyon Capital Advisors Beverly Hills CA
AQR Capital Management Greenwich CT
Fortress Investment Group** New York NY
Maverick Capital New York NY
Duquesne Capital Management** Pittsburgh PA
Millennium Management** New York NY
Adage Capital Management Boston MA
Cantillon Capital Management New York NY
York Capital Management New York NY
Lone Pine Capital Greenwich CT
Black River Asset Management Minnetonka MN
King Street Capital Management New York NY
Baupost Group Boston MA
Bain Capital/Brookside Capital Partners Boston MA
BlackRock New York NY
Pequot Capital Management Westport CT
AllianceBernstein* New York NY
TPG-Axon Capital New York NY
Paulson & Co. New York NY
Elliott Associates Greenwich CT
Grantham, Mayo, Van Otterloo


For more detailed hedge fund lists