Top 10 Hedge Funds lose $31.8 Billion, John Paulson’s Fund Leads the Losers

Discussion in 'Wall St. News' started by ASusilovic, Dec 15, 2011.

  1. December 12th, 2011
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    The Top 10 Hedge Funds saw their US Equity assets drop by an astounding $31.8 Billion, or -16.8%, during the third quarter of 2011. The precipitous drop was led by John Paulson’s hedge fund management firm, Paulson & Co, which saw its US equity assets fall by $8.5 billion. John Paulson’s firm had already had a rough year and the poor third quarter numbers were enough to drop the hedge fund from its perch as the largest US equity hedge fund manager, a position it had securely held throughout 2011. Paulson & Co. fell down to #3 on the list, reporting $20.5 in assets.

    Despite losing $2.1 billion in equity assets over the quarter, Jim Simons’ Quant focused Renaissance Technologies Corporation became the largest hedge fund on list. New York-based Renaissance secured the top spot with $23.4 in equity assets under management.

    Overall, every hedge fund in the top 10 saws its asset base drop over the quarter. Carl Icahn’s hedge fund lost the least, as the renowned shareholder activist’s Icahn Associate managed to only lose $42 million. Meanwhile, all of the other top hedge funds lost at least $1 billion over the quarter. Icahn’s performance propelled his fund to #8 on the top hedge fund list, up from #12 position Icahn held on Q2 2011 top hedge fund list.

    Like Icahn, Eddie Lampert’s ESL Investments also jumped 4 spots in the rankings. ESL’s $9.1 billion was enough to give the value focused hedge fund the 10th spot on the top hedge fund list.

    The #2 spot on the list was claimed by Boston-based Adage Capital Partners, while Clifford Asness’ AQR Capital Management LLC and David E. Shaw’s D.E. Shaw & Co ranked #4 and #5, respectively.

    What a sh1tty 3rd quarter...
  2. AK100


    Bet the fees still rolled in to the partners.

    And perhaps some of these funds will close soon, and the investors offered new shares in a new fund, then BINGO - the high water problem is no more :)
  3. But what sort of a funny metric is this? "US equity assets under management" means nothing... What if the fund sold equities and went into cash without affecting AUM? What if it sold US equities and bot Japanese equities or smth like that?
  4. Butterball


    These are the aggregate SEC reported US equity longs? What a worthless metric. The article is a pile of junk.