Strong performance drives BDC to asset high as mega firms cluster at top
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Strong performance among the largest hedge funds drove Global Billion Dollar Club (BDC) assets to a record high at the end of 2024 with a tighter clustering of mega firms at the very top, according to the latest With Intelligence research.
Just a few billion in hedge fund assets now separate Bridgewater, Elliott, Millennium, Man Group and Citadel, which could precipitate a change at the top of the BDC ranking in the near future.
Overall, the 533 firms managing more than $1bn in hedge fund assets saw their aggregate AuM rise 9% during 2024 to hit $3.35tn, the strongest growth rate since 2021. The previous year-end AuM high for the BDC stood at $3.14tn in 2021.
The BDC now accounts for around 82% of total hedge fund industry assets, which With Intelligence estimates at $4.1tn as of the end of 2024.
The 2024 growth was fueled by the best year for hedge fund returns since 2020, with quant, long/short equity, and multi-strategies leading the way. The returns were supported by a 20% rise in global stock markets and positive bond performance, although hedge fund alpha also jumped markedly on 2023 levels, according to With calculations.
The With Intelligence Index gained 10%, outpacing a typical global 60/40 portfolio which was up nearly 9% over the year.
Investor sentiment towards hedge funds has much improved over the past year, with allocation activity increasing in a better asset-raising environment, yet net asset flows remained negative. Net outflows from the sector were as much as $50bn in 2024, according to With Intelligence estimates. Equity strategies accounted for around half of the net outflows.
The aggregate assets of firms running more than $10bn in hedge fund AuM were 15% higher than the same segment at the end of 2023, and that cohort of firms rose from 70 to 79.
Indeed, the proportion of BDC assets held by $10bn-plus managers has now edged up to 57% from 52% a year earlier. Assets in the $5-10bn bracket meanwhile, now represent 17% of total BDC assets, down from 20% a year earlier as firm numbers in the segment declined 89 to 83.
Across the BDC, 374 firms grew assets over the year, with all strategy types except macro seeing asset growth. Assets of quant/CTA firms grew by 16% over the year, followed by credit (13%), relative value (12%), and multi-strategy (11%). In dollar terms, equity-focused firms added the most assets, some $72bn.
Our intel and research have shown a notable uptick in interest in event-driven strategies heading into 2025, with demand for quant and l/s equity strategies also strong. Credit has seen a decline in interest from its highs of recent years.
BDC multi-manager assets broke through the $300bn barrier last year with AuM growth picking up pace on 2023, although it was slower than prior years. While some larger multi-managers have returned capital to investors to preserve capacity and allocator surveys point to a slowdown in strategy interest this was offset by strong 2024 performance. The largest multi-managers averaged a 15% gain last year.
It should be noted that the BDC survey includes a growing number of beneficiaries of external allocations by multi-managers, a trend that picked up significantly in the last year, led by Millennium.
Largest hedge fund firms by region
| North America | Europe | Asia-Pacific | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Firm | $bn | Firm | $bn | Firm | $bn | ||||||
| 1 | Bridgewater Associates | 73 | 1 | Man Group | 71.8 | 1 | HHLR Advisors | 20 | * | ||
| 2 | Elliott Management Corporation | 72.7 | 2 | TCI Fund Management | 57.6 | * | 2 | Symmetry Investments | 12.6 | * | |
| 3 | Millennium Management | 72.4 | 3 | Marshall Wace AM | 40.7 | 3 | Aspex Management | 8.6 | * | ||
| 4 | Citadel | 65 | *** | 4 | Brevan Howard AM | 32 | 4 | Ichigo Asset Management | 7.6 | ** | |
| 5 | Two Sigma | 59 | 5 | Capula Investment Management | 30 | 5 | PAG | 7 | |||
| 6 | DE Shaw Group | 58.5 | *** | 6 | Qube Research & Technologies | 23.4 | 6 | Effissimo Capital Management | 6.5 | ||
| 7 | AQR Capital Management | 57.7 | 7 | Rokos Capital Management | 20.1 | 7 | Regal Partners | 5.5 | |||
| 8 | BlackRock | 47.8 | 8 | Capital Fund Management | 16.7 | 8 | Platinum Asset Management | 5.5 | |||
| 9 | Adage Capital Management | 43.3 | *‡ | 9 | DNCA Finance | 15.6 | 9 | Tairen Capital | 5.3 | ** | |
| 10 | Renaissance Technologies | 41 | 10 | RBC BlueBay Asset Management | 15.6 | 10 | Janchor Partners | 5 | * | ||
All AuM is in $bn. *Estimates, subject to future revision, ** Regulatory AuM, *** AuM as of 1 Jan, ‡ firm AuM.
See full BDC table for footnotes
Source: With Intelligence Billion Dollar Club
Biggest asset growth/declines over 2024
| | Firm | Dec-24 AuM | 12-mnth change | Firm | Dec-24 AuM | 12-mnth change | |||
|---|---|---|---|---|---|---|---|---|---|
| 1 | AQR Capital Management | 57.7 | 13.1 | 1 | Bridgewater Associates | 73 | -15 | ||
| 2 | Millennium Management | 72.4 | 11.8 | 2 | Element Capital Management | 3 | * | -5.5 | |
| 3 | Qube Research & Technologies | 23.4 | 9.4 | 3 | Ibiuna Investimentos | 2.7 | * | -3.4 | |
| 4 | TCI Fund Management | 57.6 | * | 7.6 | 4 | GMO | 7.8 | -3.2 | |
| 5 | Elliott Management Corporation | 72.7 | 7.2 | 5 | Trian Fund Management | 6.5 | -2.5 | ||
| 6 | WorldQuant Millennium Advisors | 13.1 | 7.1 | 6 | Platinum Asset Management | 5.5 | -2.4 | ||
| 7 | Two Sigma | 59 | 6.9 | 7 | SPX Capital | 9.1 | -2.2 | ||
| 8 | Voleon Capital Management | 12 | 6.6 | 8 | Nordea Investment Funds | 7.3 | -2.2 | ||
| 9 | Magnetar Capital | 14.7 | 6 | 9 | Kapitalo Investimentos | 3.8 | -2.1 | ||
| 10 | GoldenTree Asset Management | 28.2 | 5.4 | 10 | Laurion Capital Management | 3.6 | -2.1 |
All AuM is in $bn. *Estimates, subject to future revision, ** Regulatory AuM, *** AuM as of 1 Jan, ‡ firm AuM
See full BDC table for footnotes
Source: With Intelligence Billion Dollar Club
AQR and Millennium both grew assets by more than $10bn, with Qube Research & Technologies‘ (QRT) rapid rise to $23bn also notable among the largest managers.
Bridgewater remains the world’s largest hedge fund firm, although it has scaled down its capacity over the past year as part of a business strategy shift under CEO Nir Bar Dea. Its flagship Pure Alpha was up 11% last year, its best performance since 2018 following a near 8% loss in 2023, while its new AI macro fund was reportedly up 10%.
Managers to experience significant asset drops in 2024 include Jeff Talpins’ macro shop Element Capital, which has been returning capital to external investors as it seeks to slim down its asset base to boost returns. It has been closed to new money since 2018. GMO also saw a notable drop due in part to some reallocations by clients.
New York remains the world’s billion-dollar hedge fund hub, with 164 firms holding one-third of BDC assets, up more than $100bn in 2024. London also remains the second-largest hub by assets, around half of NY’s size.
In Asia, the aggregate hedge fund assets of Singapore-based BDC firms grew at a greater pace than those based in regional rival Hong Kong. But Hong Kong’s 38 BDC firms more than double Singapore’s count.
Global Billion Dollar Blub Top 20 ranking 2024
| Global Rank | Firm | City/State | Country | Region | Dec-24 HF AuM ($bn) | Dec-23 HF AuM ($bn) | AuM change ($bn) | |
|---|---|---|---|---|---|---|---|---|
| 1 | Bridgewater Associates | CT | USA | North America | 73 | 88 | -15 | |
| 2 | Elliott Management | FL | USA | North America | 72.7 | 65.5 | 7.2 | |
| 3 | Millennium Management | NY | USA | North America | 72.4 | 60.6 | 11.8 | |
| 4 | Man Group | London | UK | Europe | 71.8 | 73 | -1.2 | |
| 5 | Citadel | FL | USA | North America | 65 | *** | 63 | 2 |
| 6 | Two Sigma | NY | USA | North America | 59 | 52.1 | 6.9 | |
| 7 | DE Shaw Group | NY | USA | North America | 58.5 | *** | 54.1 | 4.4 |
| 8 | AQR Capital Management | CT | USA | North America | 57.7 | 44.6 | 13.1 | |
| 9 | TCI Fund Management | London | UK | Europe | 57.6 | * | 50 | 7.6 |
| 10 | BlackRock | NY | USA | North America | 47.8 | 44.6 | 3.2 | |
| 11 | Adage Capital Management | MA | USA | North America | 43.3 | *‡ | 38.6 | 4.7 |
| 12 | Renaissance Technologies | NY | USA | North America | 41 | 38 | 3 | |
| 13 | Marshall Wace AM | London | UK | Europe | 40.7 | 39.4 | 1.3 | |
| 14 | Davidson Kempner Capital Management | NY | USA | North America | 37 | ***‡ | 37 | 0 |
| 15 | Point72 Asset Management | CT | USA | North America | 36.9 | ***‡ | 32.3 | 4.6 |
| 16 | Farallon Capital Management | CA | USA | North America | 34.9 | 32.1 | 2.8 | |
| 17 | Viking Global Investors | CT | USA | North America | 34 | 30 | 4 | |
| 18 | Brevan Howard AM | London | UK | Europe | 32 | 33 | -1 | |
| 19 | PIMCO | CA | USA | North America | 30.8 | 30.5 | 0.2 | |
| 20 | Wellington Management | MA | USA | North America | 30.2 | 26.7 | 3.5 |
All AuM is in $bn. *Estimates, subject to future revision, ** Regulatory AuM, *** AuM as of 1 Jan, ‡ firm AuM.
See full BDC table for footnotes
Source: With Intelligence Billion Dollar Club