Daily Investment Tips

Here’s is a list of largest hedge funds in the world. The largest hedge funds in the world are ranked according to the amount of capital they have in management.

List of Top 10 Largest hedge Funds in The World

1. Ray Dalios Bridgewater Associates. Under $94 billion in management. World’s biggest hedge fund.
2. J.P. Morgan Asset Management. $54.2 billion under management.
3. Man Investments. $40.6 billion.
4. Paulson & Co. $35.8 billion. Controlled by the famous John Paulson!
5. Breven Howard. $32 billion. a British-based hedge fund manager that is the largest in Europe. The fund, co-founded by Alan Howard and Jean-Philippe
6. Soros Fund Management. $27.9 billion. George Soros is no longer at the controls of the day to day operations.
7. Och-Ziff Capital Management. $27.6 billion. This hedge fund is listed in NYSE.
8. Black Rock. $25 billion under management
9. BlueCrest Capital Management – $24.5 billion.
10. Angelo, Gordon, & Co – $23.6 billion.

Note . Hedge funds move up and down. A Hedge fund may be on the list now but may drop tomorrow due to bad performance.

written by Constantine Njeru \\ tags: Angelo Gordon, Asset Management, Bluecrest Capital Management, Breven, Bridgewater Associates, Europe, George Soros, Hedge Fund Manager, Hedge Funds, J P Morgan, Jean Philippe, John Paulson, Man Investments, Management World, Nyse, Och Ziff Capital, Och Ziff Capital Management, Soros Fund Management

George Soros is retiring from hedge funding business. The billionaire hedge fund manager is returning money to outside investors in his $25.5 billion firm, ending a career as hedge-fund manager that spanned more than four decades.

Soros, will hand back the money, less than $1 billion, by the end of the year. His firm will focus on managing assets solely for Soros and his family, according to a letter to investors.

George Soros Reason for Retiring

George Soros’s sons said they took the decision because new financial regulations would have made it necessary for the firm to register with the Securities and Exchange Commission by March 2012 if it continued to manage money for outsiders.

George Soros legacy

Soro’s will forever be remembered a speculator, who in 1992 made $1 billion betting that the Bank of England would be forced to devalue the pound.

In the last 30 years, he’s given away more than $8 billion to promote democracy, foster free speech, improve education and fight poverty around the world.

written by Constantine Njeru \\ tags: 1 Billion, Assets, Bank Of England, Billionaire, Education, Fight Poverty, Free Speech, George Soros, Hedge Fund Manager, Investors, Legacy, Money, More Than Four Decades, Outsiders, Poverty Around The World, Reason, Retirement, Securities And Exchange, Securities And Exchange Commission, Speculator

The surprise news of the week was Hedge  Fund manager, David Einhorn is purchasing a non-controlling stake in the Mets for $200 million. The decision has some investors wondering whether he sees an angle no one else discovered.

Some smart people on Wall Street have already looked at the Mets’ books and walked away. Even The Mets, principal owners have said the mets as a business are lousy, snakebitten and bleeding cash, having lost $50 million last year alone.

Yet Mr. Einhorn is forking out $200m! This is not the first time Einhorn has thought outside the box. He Famously made money when he bet against Lehman Brothers’ stock several months before the famed brokerage collapsed.

His he right? Only time will tell.

written by Constantine Njeru \\ tags: 50 Million, Books, Brokerage, David Einhorn, Hedge Fund Manager, Investors, Lehman Brothers, Mets, Money, News Of The Week, News Week, Principal Owners, Purchasing, Stake, Stock, Surprise, Wall Street

An interesting list for 2011 is the ranking of top ten hedge funds manager. It is a list of largest generator of profits for investors among hedge funds. The ranking calculates how much profits a hedge fund manager has generated since he opened for business.

This is the list of top ten hedge fund managers as December 2010.

1. George Soros – $35.2 billion

2. John Paulson – $32.2 billion

3. Ray Dalio’s of Bridgewater Pure Alpha -$22 billion

4. Seth Klarman of Baupost Group’s – $15.6 billion

5. David Tepper of Appaloosa – $14.5 billion

6. Bruce Kovner’s of Caxton – $13.1 billion.

7. Moore Capital Management Partners – $13 billion

8. Brevan Howard Fund – $12.5 billion

9. Farallon Capital – $12.2 billion.

10. Ed Lampert’s ESL Partners – $12 billion

written by Constantine Njeru \\ tags: 1 Billion, Appaloosa, Baupost Group, Bridgewater, Bruce Kovner, Capital Management Partners, Caxton, David Tepper, Ed Lampert, Esl, George Soros, Hedge Fund Manager, Hedge Fund Managers, Hedge Funds, Investors, John Paulson, Moore Capital Management, Profits, Ray Dalio, Seth Klarman

When Soros said Gold was a bubble, we thought the hedge fund manager was going to start shorting Gold but the money manager seems to have done the opposite. According to Soros Fund Management’s 13F filing for Quarter ending Dec 2010 it reveals that the money management firm continues to bet on gold.

George Soro Top Five Holdings

SPDR Gold Shares – 13% of portfolio

InterOil – 6% of portfolio

Monsanto – 5% of portfolio

Delta Airlines – 4% of Portfolio

Nova Gold Resources – 4% of portfolio

In George Soros complete filing it shows the man holds over 800 stocks. Diversified across technology stocks, financial stocks, ETF stocks, health care stocks, telecommunication stocks, & industrial stocks. See a complete list at Guru Stocks.

written by Constantine Njeru \\ tags: 13f, Amp, Bet, Complete List, Delta Airlines, Financial Stocks, George Soros, Gold Resources, Gold Shares, Guru, Health Care, Hedge Fund Manager, Industrial Stocks, Money Management Firm, Money Manager, Monsanto, Portfolio, Soros Fund Management, Technology Stocks, Telecommunication Stocks

The high cost of litigation across the US makes it financially difficult for those without financial means to sue through US courts. It is even more daunting going against corporate defendants with deeper pockets.

According to a NYTimes article, Pursuing a civil action in federal court costs an average of $15,000, the Federal Judicial Center reported last year. Cases involving scientific evidence, like medical malpractice claims, often cost more than $100,000.

Hedgefunds and Investors for hire

If you don’t have money to hire an attorney you can get someone to finance your case. From the same article in NYTIMes

Large banks, hedge funds and private investors hungry for new and lucrative opportunities are bankrolling other people’s lawsuits, pumping hundreds of millions of dollars into medical malpractice claims, divorce battles and class actions against corporations — all in the hope of sharing in the potential winnings.

It is that simple, outside investors finance your case and if you win they share in the spoils.

“If you want to use the civil justice system, you have to have money,” said Alan Zimmerman, who founded one of the first litigation finance companies in 1994, in San Francisco, now called the LawFinance Group.

Another group in the business of financing litigation is Counsel Financial, a Buffalo company financed by the giant Citigroup,

written by Constantine Njeru \\ tags: Buffalo Company, Cash Money, Citigroup, Civil Justice System, Class Actions, Corporate Defendants, Corporations, Federal Judicial Center, Finance Companies, Hedge Funds, Hedgefunds, Lawsuits, Litigation Finance, Lucrative Opportunities, Medical Malpractice, Nytimes Article, Pockets, Private Investors, Spoils, Zimmerman

John Meriwether is a good example of why many investors never learn from their mistakes. Investors delude themselves thinking “This time its different”

John Meriwether was the co-founder of Long Term Capital Management, together with two future Nobel Prize winners, Myron Scholes and Robert C. Merton. With this two brainys on board it seemed this hedge fund was a sure bet.

The fund got off to a flying start, it raised $1.01 billion from high net worth individuals. It delivered annualized returns of over 40% (after fees) in its first years. Nothing could go wrong.

But when the Russian crisis hit in 1998, it lost $4.6 billion in less than four months. With mounting losses and a bailout from the FED the fund was closed in early 2000.

You would have thought John Meriwether had learnt from his mistakes. But immediately after LTCM closed shop Meriwether launched JWM Partners. A fund that would continue many of LTCM’s strategies. He managed to convince investors to invest in him by promising them this time he was going to use less leverage.

Whoever said lightening doesnt strike twice was wrong, just like the Russian Financial crisis of 1998 killed LTCM, the 2007 Credit crisis struck JWM partners. JWM Partners LLC was hit with 44% loss from September 2007 to February 2009 in its one of its fund. As such, JWM Hedge Fund was shut down in July 2009.

Never buy into the idea “This time it is different.”

written by Constantine Njeru \\ tags: Bailout, Bet, Co Founder, Credit Crisis, First Years, Four Months, Hedge Fund, High Net Worth Individuals, Investors, John Meriwether, Jwm Partners Llc, Leverage, Long Term Capital, Long Term Capital Management, Losses, Myron Scholes, Nobel Prize Winners, Robert C Merton, Russian Crisis, Russian Financial Crisis

Jim Simon is a hedge fund manager with Renaissance Technologies. A.K.A as “Quants”  Traders with PHds and rely on complex mathematics in making money.

When they came to the scene with their mathematical models for investing it seemed they had found the answer to the age old question “Is there a perfect formula to make money in the stock market?”

From a NYT article:-

Mr. Simons was celebrated as the King of the Quants after his in-house fund, Medallion, posted an average return of nearly 39 percent a year, after fees, from 2000 to 2007. It was an astonishing run rivaling some of the greatest feats in investing history.

With those kind of results it was easy for investors to get carried away with the idea that Jim Simon and the rest of Quants family were the messiahs.

Past results is not an indicator of future performance.

After the collapse of Bear Sterns and Credit crises most Quant funds are fighting for their own survival. The NYT article further reported : -

The combined assets of quantitative funds specializing in United States stocks have plunged to $467 billion, from $1.2 trillion in 2007, a 61 percent decline. And One in four quant hedge funds has closed since 2007

written by Constantine Njeru \\ tags: Bear Sterns, Collapse, Crises, Feats, Hedge Fund Manager, Investment Returns, Jim Simon, Jim Simons, Mathematical Models, Medallion, Nyt, Nyt Article, Phds, Quant Funds, Quant Hedge Funds, Quantitative Funds, Quants, Renaissance Technologies, Stock Market, Trillion