A hedge fund is a type of alternative investment that collects capital from an individual or institutional investors to invest in different types of assets. These assets could be real estate, currencies, stocks, debt and more. The hedge funds often deploy complex strategies to choose the assets, as well as manage their portfolio. The primary objective of a hedge fund is to maximize the returns and eliminate the risk for the investors, irrespective of the market movement. Hedge funds are subjected to fewer regulations when compared to mutual funds and other investment vehicles, and thus, are generally accessible only to the accredited investors. If you also have an appetite to invest through hedge funds, then detailed below are the ten biggest hedge funds in the UK.
Ten biggest hedge funds in the UK
Following are the ten biggest hedge funds in the UK on the basis of assets under management (AUM):
Capula Investment Management LLP
It is a London-based hedge fund with offices in Tokyo, Hong Kong, New York and Greenwich, Connecticut, USA. Capula was founded by Yan Huo and Masao Asai in 2005. The company manages fixed income trading, enhanced fixed income products, volatility, macro trading and tail risk strategies. Capula had $45 billion in assets under management in 2018, according to hedgelists.
The Children's Investment Fund Management LLP is a London-based hedge fund firm better known by its acronym TCI. Founded by Sir Chris Hohn in 2003, the fund has a global mandate and supports the Children's Investment Fund Foundation (CIFF). Q3 2021 hedge fund letters, conferences and more The CIFF was established in 2002 by Hohn Read More
Winton Capital Management
Winton Capital was founded by David Harding in 1997. It makes investment decisions by using scientific methods, as well as investment technology. The company offers investment management and advisory services to its clients globally. In 2018, this hedge fund had more than $21 billion in assets under management.
John Armitage and William Bollinger founded Egerton Capital in 1994. The company carries out its in-house research and uses a fundamental method with a bottom-up investment approach to come up with a portfolio that is “dynamic, eclectic, and uncorrelated.” Also, the hedge fund effectively follows a diversification strategy, both geographically and through sectors. Egerton Capital primarily invests in companies with attractive valuations and significant upside potential. In 2018, the hedge fund had more than $17 billion in assets under management.
Cheyne Capital was founded in 1999 by Jonathan Lourie and Stuart Fiertz, who are currently its CEO and President, respectively. It came out with its first fund in 2000. Cheyne Capital specializes in Convertible Bonds, Social Property Impact, Event Driven Investing, Real Estate Debt, and Corporate Credit. It has offices in London, Switzerland, Bermuda and New York City. In 2018, the hedge fund had more than $16 billion in assets under management.
It is a global asset management firm that focuses on sub-investment grade corporate credit, which covers a wide range of investment possibilities, including Distressed Debt, Secured Loans, High Yield Bonds, Direct Lending, Structured Credit and more. Alcentra was founded in 2002 and has offices in London, Boston, New York and Singapore. In 2018, the hedge fund had more than $13 billion in assets under management.
Oxford Asset Management
This hedge fund was founded in 2004 and is based out of Oxford, UK. Oxford Asset describes itself as a quantitative research and technology company that utilizes computer-based models to make investing decisions. This hedge fund had significant investments in the information technology sector and the health care sector. In 2018, the hedge fund had about $13 billion in assets under management, compared to under $1 billion back in 2010.
Algebris Investments is an independent global asset manager focusing on long-only and alternative investment strategies. It was founded in 2006 by Davide Serra, and it has offices in London, Milan, Luxembourg, Dublin, Boston, Singapore and Tokyo. As per the company, its mission is to generate long-term stable income for investors. In 2018, the hedge fund had over $12 billion in assets under management.
Polar Capital Partners
It is a London-based investment management company founded in 2001. Polar Capital works as a subsidiary company of Polar Capital Holdings. The company offers portfolio management and advisory services to mostly all business entities, be it HNIs, charitable organizations, pooled investment vehicles, collateralized debt obligations, corporations and more. It also has offices in Tokyo, Connecticut, Jersey and Geneva. In 2018, the hedge fund had almost $12 billion in assets under management.
HSBC Alternative Investments
Founded in 1993, HSBC Alternative Investments is based out of London. It offers investment management and investment advisory services. The company works to design hedge fund, real estate and private equity solutions for institutional, as well as private investors. In 2018, the company had over $11 billion in assets under management.
Lindsell Train Limited
Lindsell Train, founded in 2000, is an equity investment manager that offers portfolio management and financial advisory services. It offers its services to insurance companies, charitable institutions, foundations, multi-manager funds and more. In 2018, the company had over $11 billion in assets under management.