What are the top states for hedge funds?
U.S. hedge funds are established primarily in Delaware because Delaware offers the most advanced business friendly law in the United States. In fact, Delaware's business friendly environment is attractive to companies across the globe, not just hedge funds. Governing law matters.
U.S. hedge funds are established primarily in Delaware because Delaware offers the most advanced business friendly law in the United States. In fact, Delaware's business friendly environment is attractive to companies across the globe, not just hedge funds. Governing law matters.
| Rank | Firm | Headquarters |
|---|---|---|
| 1 | Bridgewater Associates | Westport, CT |
| 2 | Man Group | London, UK |
| 3 | Millennium Management, LLC | New York, NY |
| 4 | The Children's Investment Fund Management | London, UK |
New York City
New York is home to major investment banks, hedge funds, and law firms.
Connecticut Hedge Fund Association Inc. The State of Connecticut is one of the world's financial centers, and the town of Greenwich is known as the "hedge fund capital of the world".
- Certainly not all, but a pretty significant majority are indeed based in the New York / Connecticut area, which is home to some of the largest and most important funds, such as Bridgewater, Millennium, Point72 and others.
- Chicago is also home to several notable funds and prop trading shops.
According to an eFinancialCareers.com analysis of its curriculum vita database, the following U.S. colleges are the most popular for hedge fund professionals: Columbia University, New York University, University of Pennsylvania, Cornell University, University of California, Harvard University, University of Chicago, ...
| Rank | Firm Name | ADV Filing Date |
|---|---|---|
| 1 | Millennium Management | 09/26/2023 |
| 2 | Citadel Advisors | 07/07/2023 |
| 3 | Bridgewater Associates | 04/21/2023 |
| 4 | Balyasny Asset Management | 05/18/2023 |
Candidates (Who Gets In): Private equity overwhelmingly attracts former investment bankers, along with some consultants and Big 4 and corporate development professionals; hedge funds attract a more varied crowd, including investment bankers, equity research professionals, buy-side analysts at other firms, and sales & ...
In addition to this, some cities also have large populations of high-net-worth individuals who are among potential clients for hedge funds. It's these considerations that make cities like New York and London particularly attractive to many hedge funds.
What is better than hedge fund?
Investment strategies
Mutual funds are generally considered safer investments than hedge funds. That's because fund managers are limited in their ability to use riskier strategies such as leveraging their holdings, which can increase returns, but it also increases volatility.
Billionaire Ken Griffin's Citadel remained in pole position in 2023, with $74 billion in gains since its creation in 1990. Last year, Citadel's flagship fund rose 15.3% and the firm decided to give back about $7 billion to investors.
Citadel, which ranked second in 2023, made $8.1 billion in profits after bringing in a record-breaking $16 billion in 2022. Its $74 billion in gains since inception rank it as the most successful hedge fund in history.
A hedge fund investment is often considered a risky, alternative investment choice and usually requires a high minimum investment or net worth. Hedge funds typically target wealthy investors.
Hedge fund managers typically earn above-average compensation, often from a two-and-twenty fee structure. Hedge fund managers typically specialize in a particular investment strategy that they then use to power their fund portfolio's mandate for profits.
In other words: New York hedge fund firms aren't markedly different from firms in other parts of the country – they just have the advantage of being headquartered in a city that offers excellent chances to connect with other financial companies and access some of the greatest financial talents, such as hedge fund ...
Miami is "rich in diversity and abounding with energy," Griffin informed his employees in 2022 when he announced the move. By comparison, Griffin criticized Chicago as having a problem with crime and said that many Chicago-based employees had already asked to transfer out of the city.
What education is required to become a hedge fund manager? Many hedge fund employers require employees to receive a bachelor's degree in finance or a related specialty like accounting or economics. Some hiring managers may require a master's in business administration as well.
It is not uncommon for someone with 5 to 10 years of experience (if they last that long) to secure hedge fund salaries that are close to US$ 1 million per year. If you start your own hedge fund, though, hedge fund salaries get a little more complicated.
The top school for American hedge funds was Harvard University, followed by Penn and Chicago. For U.S. equities, Penn was first, followed by Chicago and Harvard. In U.S. fixed income, Penn was again number one, followed by Chicago and New York University.
What degree is best for hedge funds?
A B.S. in finance can prepare you for a range of hedge fund positions: asset manager, portfolio or equity analyst, and equity trader. A finance-oriented bachelor's degree can also be a great primer for a Master of Business Administration (MBA).
| School | % of alums<br> across all funds | School<br> batting average<br> for top<br> fund placement |
|---|---|---|
| New York University | 2.43% | 8.25% |
| Princeton University | 2.34% | 9.09% |
| Yale University | 2.22% | 11.70% |
| University of California (Berkeley) | 2.20% | 4.84% |
Bridgewater Associates
Today Bridgewater is the largest hedge fund in the world and Dalio has a personal fortune of approximately $19 billion.
- Madoff Investment Scandal. ...
- SAC Capital. ...
- The Galleon Group. ...
- Long-Term Capital Management. ...
- Pequot Capital. ...
- Amaranth Advisors. ...
- Tiger Funds. ...
- Aman Capital.
BlackRock manages US$38bn across a broad range of hedge fund strategies. With over 20 years of proven experience, the depth and breadth of our platform has evolved into a comprehensive toolkit of 30+ strategies.
