November 2010
Intermediate to advanced
160 pages
3h 45m
English
Chapter 2
The players
Most people will know the names of the big banks in their country; many will be aware of some of the big traditional fund management groups, such as Fidelity and Vanguard. But with the sole exception of George Soros, when it comes to hedge funds normal people will be stumped for a name. That adds to the hedge funds’ air of mystery; but it may also increase suspicion in the minds of voters and politicians as these unknown souls earn a fortune for doing goodness knows what.
Worse still, managers come and go with remarkable rapidity. Vega Asset Management, a Spanish group, was hailed by some as Europe’s largest hedge fund manager in 2004, but it made a series of bad bets on interest rates and currencies in 2006 and suffered a heavy hit from redemptions. Consequently, even those with an interest in investment can be stumped by a reference to “Joe Schmoe, the hot new hedge fund manager out of Acme Capital”. So it is worth describing some of the more prominent names in the industry, as of late 2009.
Some hedge fund managers like publicity; others go to great lengths to keep out of the public eye. Since they do not market their wares to the general investor, even their websites can provide little information. So, alas, it is not possible for this chapter to provide a comprehensive list; those not included have tried hard not to be so. And the length of the entries may well reflect the openness of the manager as much as the importance of the group.
AQR Capital Management ...
