The Latest Ranking Of Global Hedge Funds Is Announced!Bridgewater Retains Its Title, Castle Advances 4 Places, And Renaissance Technology Declines In Scale

China Fund News reporter Wu Juanjuan intern Zhang Xinxin

Recently, the investment magazine "Pension and Investment" website announced the list of the world's top ten hedge funds in 2022. Data shows that as of June 30, 2022, the top ten hedge funds in size are Bridgewater (). , Man Group, (), (), (), DE. Shaw Group, Two Sigma/, Davidson. Kemp Na Capital Management Company ( ), Kemp Na Capital Management Company ( ), TCI Fund Management Company (TCI Fund).

Compared with 2021, Castle Investment ( ) rose from 9th to 5th, becoming the fastest-rising institution in the top ten list.

We together look.

Bridgewater continues to retain the title, Castle Investment soars 4 places

Figures from Pensions & Investments magazine show that seven in 10 assets under management increased compared with the previous year. Among them, Castle Investment () has the largest increase in asset management scale, increasing by 40.85% compared with 2021. As of June 30, 2022, its management scale reached US$52.97 billion (equivalent to approximately RMB 373.028 billion), ranking fifth. Virtue. Shaw Group's asset management growth rate ranked second at 20.4%, and its scale of management increased to US$47.861 billion (equivalent to approximately RMB 337.049 billion), ranking sixth. It is worth noting that Bridgewater’s assets under management increased by 19.6%. After the capital increase, its management scale still ranks first with US$126.4 billion (equivalent to approximately RMB 890.141 billion).

The growth in company size is partly driven by performance, partly by attracting new capital inflows, and partly by a combination of these two reasons.

This newspaper once reported that the number one hedge fund "Bridgewater" has performed well this year. Its pure alpha (volatility 12%) strategy returned 13.98% in the first seven months of this year, significantly better than the global hedge fund industry average.

Bridgewater led the market in this inflation cycle to judge that the United States will be experiencing high inflation for a long time, laying the foundation for its asset allocation. Dalio, the founder of Bridgewater Associates, recently posted on the Internet that if U.S. interest rates rise to 4.5%, U.S. stocks may fall another 20%.

Before Dalio published his article, the United States had just released August CPI data. Data shows that U.S. inflation remains high and exceeds market expectations. Dalio believes that U.S. interest rates will still rise, other markets will be under pressure, and the U.S. economy will be weaker than expected. As financing costs rise, private sector credit growth will fall, private sector spending will fall, and economic growth will slow.

According to Reuters, rising U.S. mortgage rates have had an impact on the housing market. The interest rate on the most closely watched U.S. home loan rose above 6% for the first time since 2008. Dalio wrote that the U.S. economy needs a sharp adjustment to curb inflation, but that will take time.

Its rapid rise is due to its excellent performance. According to reports, the net value of flagship fund Wellington rose another 3.74% in August. In the first eight months of 2022, the return of the flagship fund Wellington reached 25.8%, significantly surpassing similar products of its peers such as Millennium and Deshao. By comparison, the S&P 500 fell 17% in the first eight months of 2022.

The King of Quantification, Renaissance Technology, and Decline in Scale

Information from "Pension and Investment" magazine shows that three of the top ten hedge fund companies have experienced shrinkage in management scale. Among them, TCI Fund Management Company (TCI Fund) has shrunk most significantly. Compared with 2021, its size has shrunk by 9.5%. As of June 30, 2022, its management scale was US$36.2 billion (equivalent to approximately RMB 254.930 billion). In addition, the AUM of () and () fell by 1.8% and 1.7% respectively. The scale after contraction was US$37.4 billion (equivalent to approximately RMB 263.380 billion) and US$57 billion (equivalent to approximately RMB 401.408 billion) respectively.

The public funds of Fuxing Technology, the king of quantification, have performed mediocrely for several consecutive years. Renaissance Technology once wrote in information disclosure materials submitted to regulatory agencies that since the epidemic, the performance of the Beta models of some strategies has not met expectations. Whether Fuxing Technology, known as the most powerful money-making fund in history, can reproduce the glory of the "Medal" fund among external funds is still a question mark.

Tiger Management is not on the list

Against the backdrop of the Federal Reserve's hawkish interest rate hikes and a sharp correction in U.S. technology stocks, the "Tiger Family" of global hedge fund families suffered heavy losses. For example, Tiger Global Management lost billions in the tech stock pullback, according to Reuters. Tiger Global Fund significantly reduced its holdings in the second quarter and cleared its positions in U.S. stocks.

The net value of the company's flagship fund fell by more than 50% in the first half of this year. The market is worried about the Federal Reserve raising interest rates and surging inflation. Technology stocks pulled back sharply as a result. Tiger Global said in its "Letter to Investors" that it has underestimated the impact of inflation on the market, but is currently cautious about investing.

Wang Guohui, founder of Singapore's asset management institution APS, wrote in a letter to investors that in an environment of abundant liquidity, a number of star fund managers have emerged in both the United States and China. These fund managers have made huge returns from technology stocks and the Internet industry, becoming superstars who can "see the future." When liquidity shrinks, it is worth thinking about whether these stars will step down.

The most famous ones, Tiger Hedge Fund and Tiger Global, failed to make it into the top ten hedge funds.

Equity strategies struggle to navigate high-volatility environment

Among the world's top ten hedge funds, quantitative funds still dominate. Another feature revealed by this list is that it is difficult for equity strategies to break into the top ten hedge funds. In particular, none of the top five hedge funds on this list are equity strategy funds.

This may be related to the current specific market environment. In fact, not only Tiger Fund, but global equity strategy funds as a whole have performed poorly in volatile markets.

Data from HFR, a hedge fund research institution, also shows that in the first seven months of this year, the performance of stock hedging strategies ranked lower among major strategies, while the performance of macro strategy hedge funds ranked relatively high. Among macro hedging strategies, Bridgewater Fund’s pure alpha (volatility 12%) strategy recorded a return of 13.98% in the first seven months of this year, significantly outperforming the global hedge fund industry average.

The multi-asset strategy fund manager of a trillion-dollar asset management giant in the United States recently said in an interview with this newspaper that in a market with low interest rates, unilateral stock rises, and low volatility, macro strategies may be adjusted. Underperforming equity strategies. But in highly volatile markets, such as this year and in the future, macro strategies will have opportunities to play a role.

In addition to macro strategies, multi-strategy or multi-asset funds have also outperformed equity strategies this year.

Bridgewater Associates and Renaissance Technologies are leaders in the macro and multi-strategy space.

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标签： #Funds #Hedging #Strategy #Technology #Renaissance