It has been a great year for the world’s largest hedge funds. In the first half of 2021, hedge funds returned an average of over 10% – the strongest figure in Wall Street has seen in over two decades. If you look at the best performing hedge funds, one thing is quite obvious. This was a year of unexpected turns in the financial market and yet these firms stood their ground. Without further ado, let’s find out who the biggest names are and how they’ve held onto the top position for long.
What Are the Best Performing Hedge Funds
This year has been very challenging due to the economic devastation caused by the coronavirus pandemic. However, some well-known and tested hedge funds remained successful and stable in the harsh economy. So let’s look at the largest hedge funds in the world, their portfolio movements and their stock picking skills. You can trust them as the leading hedge funds that churn a lot of money on a daily basis.
Renaissance Technologies
Renaissance Technologies is one of the best performing hedge funds in the world of economics. They apply the so-called “quant” strategy which is based on the mathematical relationships between the data. The strategy is also known to be very effective in owning positions for a short amount of time, which leads to better positions overall.
The mind behind Renaissance Technologies is Jm Simons who is a mathematician and trader in the company that shows no signs of bad results in the present moment. As a hedge fund manager, Jim Simons applies string theory and brings profit to the organization.
Bridgewater Associates
Bridgewater Associates manages about $150 billion of investor money, which makes the company the biggest hedge fund in the world.
The company was founded by Ray Dalio in 1975 when most investor money assets were at the lower level. Over the years, the hedge fund has increased in investments and it is now the biggest on the market.
It is well known that the company does not have any individual clients and it requires clients to have a minimum of $7.5 billion of investable assets.
Pershing Square
Our list of the world’s largest hedge funds wouldn’t be complete without the mention of Pershing Square. This company is run by Bill Ackman, a Wall Street billionaire who made success in many endeavors. Ackman is known to be a brilliant investor and his passion for finding good companies could give the Wall Street a run for its money.
Pershing Square’s assets under management are $13.1 billion according to the 2020 results. This makes the company one of the biggest players in the hedge fund game.
What Makes a Good Hedge Fund
You may wonder what makes a hedge fund good. There are multiple reasons why some funds are better than others.
One of the most obvious factors is related to the individuals behind the companies that take care of investments. All of the successful hedge funds are driven by strong individuals who know how to make things happen.
No matter if the investments are good or bad in a temporary way, the individuals behind hedge funds know how to profit in the long run.
This is the reason why some of the best-performing hedge funds exist in the market even after many years and many ups and downs.
People decide on hedge fund investment options because they want to be secure at some point. If there is a crash on the stock market, there is always an option on the hedge fund market. This applies to the overall diversification that investors try to achieve in the long run.
A good hedge fund manager should always know what assets can bring more profit on the market. These assets can be lucrative for some time, and there might be options to increase the value of these assets. If this happens, both stock markets and hedge funds markets can profit.
If a hedge fund manager has a sense of this kind of predictability, the situation may be very beneficial for the entire hedge fund company and its growth in the future.
