What Are the Biggest Hedge Funds in the World?

Hedge funds are pooled investments that use a variety of strategies in an effort to generate outsized profits for their investors. The hedge fund manager decides what to buy and sell, and there are few restrictions on their choices. Assets held in the fund can include stocks, bonds, derivatives, commodities, and currencies, among other choices. A fund can be long-only or short-only or use a combination of long and short strategies.

Hedge funds typically charge higher fees than traditional mutual funds or exchange-traded funds, and the justification for the higher fees is that hedge funds can sometimes deliver investors robust returns, even in down markets. Managers of the largest funds earn millions of dollars per year and, in some cases, billions.

More than 30,000 hedge funds operate worldwide with roughly $5.13 trillion in combined assets under management (AUM) as of Q2 2024. The United States is home to 70% of the world's funds.

Here are the five biggest hedge funds in 2024 according to ADV Ratings.

Bridgewater Associates

Bridgewater, the Connecticut-based fund of Ray Dalio, remains the largest fund in the world in terms of assets. Founded in 1975, it had $124 billion in assets under management for the entire company as of September 2024. Bridgewater's clients include institutional investors, charitable foundations, university endowments, and pension funds. The company employs roughly 1,300 people.

In late 2022, Dalio left Bridgewater Associated with a very generous exit package that will earn billions over the next few years. The hedge fund manager raked in an estimated $900 million in compensation in 2022 alone. According to Forbes, his net worth was about $14 billion as of September 2024.

Man Group

Headquartered in London, Man Group is the third-largest hedge fund operator with more than $97 billion of assets under management in March 2022. It provides a range of funds to institutional and private investors. The company has offices around the world including in Hong Kong, New York, Tokyo, and Sydney.

James Man founded the company in 1783 as a sugar cooperative and brokerage firm. With shares listed on the London Stock Exchange (LSE), it is the largest publicly-traded hedge fund in the world. Luke Ellis is Man Group's chief executive officer (CEO).

Renaissance Technologies

James Simons, the co-founder of Renaissance Technologies, propelled his fund to the second spot on the list. Renaissance is one of the oldest and most popular quantitative firms, and its strategy has paid off significantly. The firm is headquartered in New York and has roughly $130 billion in AUM. It serves corporations, trusts, individual investors, and financial institutions.

Renaissance is currently run by Peter Brown while Simons remains a board member. Simons had a net worth of $21.6 billion as of March 2020, according to Forbes.

Millennium Management

Founded in 1989, Millennium Management LLC now has about 3,700 employees in New York, Asia, and Europe. In June 2022, the firm had $55 billion in assets under management.

Its founder, Israel Englander, remains its chief executive officer. Known as Izzy, Forbes estimates his net worth at $11.3 billion as of late 2022. The Bloomberg Billionaires Index estimates his net worth at $29.3 billion, making him 156th on its list of the world's 500 richest people.

Citadel

Headquartered in Chicago, Citadel LLC has offices in Asia and Europe. It had $53 billion in assets under management in June 2022. Founded in 1990, founder Kenneth C. Griffin remains the firm's chief executive officer.

The Bloomberg Billionaires Index estimates his net worth at $29.3 billion, making him 42nd on its list of the world's 500 richest people.

Frequently Asked Questions

The Bottom Line

The world's most successful hedge funds have a long track record of success and are headed by people who have earned a reputation for producing outsized results for their investors.

Still, hedge funds are considered an alternative investment. That's not entirely a euphemism for risk, but the risk is definitely there. Their managers attract clients by having a track record of successful investing. That is, as the fine print always says, no guarantee of future performance.