Goldman loses hedge fund top spot |
Date: Tuesday, March 6, 2007
Author: William Hutchings, Financial News US
JP
Morgan Asset Management, which in 2004 bought US hedge fund manager Highbridge,
has replaced Goldman Sachs at the top of a list of the 10 biggest US hedge fund
managers, as its assets under management rose to $34bn (€26bn).
The firm had $28.8bn under management at the end of June, according to Absolute
Return, a
Goldman
Sachs Asset Management increased its hedge fund assets under management
from $29.5bn at the end of June to $32.53bn six months later.
In a sign that investors are not put off by higher fees in a period of six
months $12bn was poured into into one of the world's most expensive managers.
The hedge fund run by Renaissance
Technologies rose to sixth place on the list of largest
The manager is gathering assets for a fund that it has said has capacity of
$100bn, which would make it the largest raised in history.
Renaissance is offering investors a choice of fee structures. These include
a 0.5% management fee, which is below the industry standard, coupled with a
performance fee of 30% of any returns above the S&P
500 index, which is above the norm.
Renaissance used to charge investors management fees of 4% of assets and
performance fees of 44% of any gains on Medallion,
a $5.4bn managed futures hedge fund that relies entirely on systems and which
achieved a net return of just over 34% a year since it started in 1988.
The firm finished buying out all third-party investors last year but has
continued running the fund for itself.
Other managers on the list include Bridgewater
Associates which lifted its assets from $28bn to $30.2bn; DE
Shaw grew from $23.2bn to $26.3bn and Farallon
Capital Management expanded from $18.1bn to $26.2bn.
Och-Ziff
Capital Management's assets rose from $17bn to $21bn, Cerberus
Capital Management from $11.6bn to $19.15bn, Barclays
Global Investors from $17bn to $18.9bn and ESL
Investments from $15.5bn to $18bn.