Europe 50 (2006)

Europe's 50 largest single manager groups ranked by AUM at end of May 2006

by Philippe Teilhard, Managing Director, Alternative Investment Solutions, Fimat

The European hedge fund landscape is a changing one, partly dictated to by the vicarious fortunes of the markets, and their impact on the strategies pursued by various managers themselves. Yet at the same time we are starting to see a group of top tier management firms emerging, which have the scale, both in terms of assets under management and critical mass, to ride out any market volatility.

This much is evident from The Hedge Fund Journal's research for its EUROPE50 rankings. Here we can see a class of fund managers that are either part of, or actively supported by larger financial groups, and represent those groups' presence in the hedge fund market, or are stand-alone groups that have grown to a point where they can afford to diversify their offering, taking on new portfolio managers, or implementing new trading strategies in order to scale-up their businesses. These are also firms which can continue to invest in support personnel and infrastructure, and can attract substantial institutional investors who are more likely to stick with them in years to come. These are firms that are determined to keep their relative positions as substantial asset management entitiesby supporting initiatives which will help them to expand and to diversify. Furthermore, these are firms that invest heavily in research and development to ensure they maintain their performance delivery to investors.

The leader of the pack is still the flag-bearer of the European hedge fund industry, Man Investments, with $16.2bn in assets under management (May 2006), up from $12bn in November last year. A close second is Barclays Global Investors, which has $16bn, up from $13bn, with GLG, in third at $15.5bn, up from $11.1bn.

London has been, and remains, the top hedge fund centre in Europe with around 89% of the assets of the EUROPE50 managers. It is also the historical base of highly succesful independent firms such as Brevan Howard, Cheyne and Winton Capital Management, but it is a characteristic of the on-going evolution of this unique market that the EUROPE50 rankings should feature an increasing number of funds based elsewhere in Europe, a trend that is likely to continue.

The non-UK leader, in terms of assets under management, is Madrid-based Vega Asset Management, with $6.3bn, ranked 12th overall. However, the heart of the hedge fund sector on the continent is undoubtedly Paris, home to a clutch of hedge fund managers, including Dexia with $5.8bn, BAREP (SocGen) with $1.7bn, Sinopia (part of HSBC) with $1.1bn, and Systeia (Crédit Agricole) with $1.1bn, although Systeia just failed to make the cut and sit in 51st position.

Scandinavia is also an exciting region for hedge fund developments, and has produced established players in the form of Sweden's Brummer ($5.1bn) and Finland's 3C ($530m).

Other European players include Dutch Transtrend ($3.2bn), now Cyprus-based IKOS ($2.56bn) and Italian Kairos ($1.7bn).
 

How the rankings were compiled

Volatility ensures that any single AUM figure can only be a snapshot of the size of a fund manager's assets: it gives us a highly specific valuation point that is not necessarily indicative of the ongoing fortunes of that firm. Hence, The Hedge Fund Journal has provided two sets of AUMs for each entry, one for the end of November 2005, and one for the end of May 2006. Together, they give us a certain perspective, though readers should still bear in mind that, coincidentally, both these points in time followed difficult months for the hedge fund industry as a whole.

As ever in the financial services industry, past performance is not a guarantee of future fortunes. Perhaps the biggest casualty in this respect over the period in review was KBC, with assets falling from an estimated $5bn early in 2005, to $1bn at the end of the year, causing the departure of Andy Preston.

As ever in the financial services industry, past performance is not a guarantee of future fortunes. Perhaps the biggest casualty in this respect over the period in review was KBC, with assets falling from an estimated $5bn early in 2005, to $1bn at the end of the year, causing the departure of Andy Preston.

It is still possible, even amongst the ranks of the hedge fund giants, to see businesses adversely affected by the fortunes of one fund and its manager, but the generation of CIOs now at the helms of many of the larger firms on this list seem to be heavily wedded to a high level of investment discipline and emphasis on risk management, which comes through in many of the interviews this publication has published over the past two years. It is this approach to investment management that serves to reassure institutional clients moving into this market, and helps the bigger firms to keep a close watch on the range of funds they manage.

The data provided in the EUROPE50 has been sourced where possible from the hedge fund managers themselves.

Where it has not been possible to obtain confirmation of thedata, or where a manager has declined to participate, The Hedge Fund Journal has, with two exceptions, included an estimate. The Children's Investment Fund and Egerton chose not to report their figures but estimates have been made. Centaurus Capital and Toscafund would probably have made the EUROPE50 only they chose not to report their figures and The Hedge Fund Journal decided not to include estimates. Where the May AUM figure was not available, the ranking was determined using the November figure.

Valid for inclusion in the table are the global assets of any hedge fund based in Europe, excluding funds of funds, but including US firms that maintain standalone units in Europe. For example, Citigroup's Tribeca has been listed, but not the bank's much larger hedge funds managed in the US. By contrast, Goldman Sachs, though a largely global operation, and with more than $14bn in fund assets domiciled in Dublin, has been regarded as a US operation in this respect, as all of its $39bn in single hedge fund assets is managed out of the US.

Valid for inclusion in the table are the global assets of any hedge fund based in Europe, excluding funds of funds, but including US firms that maintain standalone units in Europe. For example, Citigroup's Tribeca has been listed, but not the bank's much larger hedge funds managed in the US. By contrast, Goldman Sachs, though a largely global operation, and with more than $14bn in fund assets domiciled in Dublin, has been regarded as a US operation in this respect, as all of its $39bn in single hedge fund assets is managed out of the US.

Managers who feel they might warrant inclusion in a future EUROPE50 are encouraged to contact The Hedge Fund Journal.

We at Fimat congratulate those firms that have made the list, and look forward to seeing further evidence of their success in future surveys carried out by The Hedge Fund Journal.
 

01.Man Investments

AUM 31 May 06 US$16.2bn (1)
AUM 30 Nov 05 US$12.0bn
Location London
Fund Name Strategy/style Founders/Principals
AHL Managed futures Harvey McGrath
Stanley Fink
Peter Clarke

Comments: (1) end of June

 

02.Barclays Global Investors

AUM 31 May 06 US$16.0bn (1)
AUM 30 Nov 05 US$13.0bn
Location London
Fund Name Strategy/style Founders/Principals
European Market Neutral Fund
Multi-strategy Fund
UK Equities Market Neutral Fund
Equity statistical arbitrage (Europe)
Global multi-strategy
Equity statistical arbitrage (UK)
Blake Grossman
Stan Beckers

Comments: (1) end of June

 

03.GLG Partners

AUM 31 May 06 US$15.5bn
AUM 30 Nov 05 US$11.1bn
Location London
Fund Name Strategy/style Founders/Principals
GLG European Long-short Fund
GLG North American Opportunity Fund
GLG Emerging Markets Fund
GLG Market Neutral Fund
GLG Alpha SelectFund
Market neutral equity long-short, Europe
Equity long-short North America
Macro style, multi-asset class mainly LatAm and Europe
Multi-strategy arbitrage, global
Market neutral equity long-short, UK
Noam Gottesman
Pierre Lagrange

04.Lansdowne Partners

AUM 31 May 06 US$11.3bn
AUM 30 Nov 05 US$7.7bn
Location London
Fund Name Strategy/style Founders/Principals
Lansdowne European Equity Fund Ltd
Lansdowne UK Equity Fund Ltd
Lansdowne Global Financials Fund Ltd
Lansdowne Macro Fund Ltd
Lansdowne Long Only Fund Ltd
Long/short equity
Long/short equity
Long/short equity
Asset allocation, equity theme and sector positions
Long equity with leverage
Paul Ruddock
Steve Heinz

05.BlueCrest Capital Management

AUM 31 May 06 US$11.12bn
AUM 30 Nov 05 US$8.0bn (est)
Location London
Fund Name Strategy/style Founders/Principals
BlueCrest Capital International Fund
BlueCrest Strategic
Blue Trend
BlueCrest Equity
Emerging Markets
Cross market arbitrage
Global macro
Systematic trend follower
Equity long/short
Global emerging markets
Mike Platt
William Reeves

06.Brevan Howard Asset Management

AUM 31 May 06 US$10.48bn
AUM 30 Nov 05 US$8.75bn (est)
Location London
Fund Name Strategy/style Founders/Principals
Brevan Howard Master Fund Global macro Alan Howard

07.Sloane Robinson Investment Management

AUM 31 May 06 US$9.08bn
AUM 30 Nov 05 US$7.1bn (est)
Location London
Fund Name Strategy/style Founders/Principals
SR Global Fund (A) Europe US$
SR Global Fund (B) Asia
SR Global Fund (C) International
SR Global Fund (F) Euro
SR Global Fund (G) Emerging Markets
Market directional equity long/short with net long bias Hugh Sloane
George Robinson

08.Cheyne Capital

AUM 31 May 06 US$8.7bn
AUM 30 Nov 05 US$7.2bn (est)
Location London
Fund Name Strategy/style Founders/Principals
Cheyne Special Situations Fund
Cheyne Long/Short Structured Credit
European multi-strategy
Global credit
Stuart Fiertz
Jonathan Lourie

09.Gartmore Investment Management

AUM 31 May 06 US$8.1bn (1)
AUM 30 Nov 05 US$6.2bn (est)
Location London
Fund Name Strategy/style Founders/Principals
AlphaGen Capella
AlphaGen Tucana
AlphaGen Avior
AlphaGen Velas
AlphaGen Regulus
European large cap equities
European diversified equities
UK large cap equities
European equities directional
European quantitative
Jeff Meyer
Paul Feeney
Roger Guy
Martin Phipps
Guillaume Rambourg

Comments (1) April 2006

 

10.The Children's Investment Fund Management

AUM 31 May 06 N/A
AUM 30 Nov 05 US$6.5bn (est)
Location London
Fund Name Strategy/style Founders/Principals
Declined to participate Declined to participate Christopher Hohn

Comments Declined to participate

 

11.Marshall Wace

AUM 31 May 06 US$6.46bn
AUM 30 Nov 05 US$6.3bn (1)
Location London
Fund Name Strategy/style Founders/Principals
Eureka (Euro) Fund
Eureka Interactive Fund
Affinium Fund
Marshall Wace TOPS Fund
Equity long/short
TMT equity long/short
Statistical Arbitrage Fund
Process-driven strategy, equity long/short
Paul Marshall
Ian Wace

Comments (1) end of Dec 2005

 

12.Vega Asset Management

AUM 31 May 06 US$6.36bn
AUM 30 Nov 05 US$5.8bn
Location Madrid, New York
Fund Name Strategy/style Founders/Principals
Global Strategy
Select Strategy
Relative Value Strategy
Macro strategy
Macro strategy
Fixed income strategy
Ravi Mehra
Jesus Saa Requejo

13.Millennium Global Investments

AUM 31 May 06 US$6.29bn
AUM 30 Nov 05 US$3.42bn
Location London
Fund Name Strategy/style Founders/Principals
Millennium Global High Yield Fund
Millennium Radar Fund
Millennium Global Currency Fund
Millennium Global Special Situations Americas Fund
Event driven in high yield & distressed securities
Global macro
Total returns in global currencies & related markets
Distressed debt/special situations closed-end fund with a 5-year life
Michael Huttman
Alan Eisner
Joe Strubel
Mark Astley

14.Dexia Asset Management

AUM 31 May 06 N/A
AUM 30 Nov 05 US$5.78bn
Location Paris
Fund Name Strategy/style Founders/Principals
Dexia Long/Short Risk Arbitrage
Dexia Long/Short Double Alpha
Dexia Credit Arbitrage
Dexia High Yield BB
Dexia Index Arbitrage
Event driven risk arbitrage
Long/short equity market neutral
Credit arbitrage
Opportunistic credit discretionary approach
Index arbitrage
Naïm Abou-Jaoudé
Fabrice Couchet

15.ADI

AUM 31 May 06 US$5.54bn
AUM 30 Nov 05 US$4.09bn
Location Paris
Fund Name Strategy/style Founders/Principals
ADI Risk Arb Absolu
ADI Convert Absolu
Kallista CB Arbitrage
Merger Arbitrage
Multi-strategy
Convertible arbitrage
Erich Bonnet
Christophe Bourret
Nicoals Gomart
Christophe Lepitre
Alain Reinhold

Comments Declined to participate. All funds closed.

 

16.Winton Capital Management

AUM 31 May 06 US$5.5bn
AUM 30 Nov 05 US$4.0bn
Location London
Fund Name Strategy/style Founders/Principals
Winton Futures Fund
Winton Evolution Fund
Diversified managed futures David Harding
Martin Hunt

17.Brummer & Partners

AUM 31 May 06 US$5.1bn
AUM 30 Nov 05 US$3.78bn
Location Stockholm
Fund Name Strategy/style Founders/Principals
Zenit
Nektar
Latitude
Lynx
Futuris
Long/short global equity
Market neutral
Global macro with focus on fixed income
Global futures fund (equity market indices, fixed income, currencies + commodities
Long/short European equity fund with a Nordic focus
Patrik Brummer
Kent Janér
Jens Berglund
Jonas Bengtsson
Arne Vaagen

18.Global Asset Management (GAM)

AUM 31 May 06 US$4.92bn
AUM 30 Nov 05 US$4.2bn
Location London, New York, Hong Kong
Fund Name Strategy/style Founders/Principals
GAM European Equity Hedge
GAM Japan Equity Hedge
GAM UK Equity Hedge
GAM European Small Cap Hedge
GAM International Equity Hedge
Long/short equity Europe
Long/short equity Japan
Long/short equity UK
Long/short equity European small cap
Long/short equity international
John Bennett
Lesley Kaye
Ross Hollyman
John Bennett/Patric Slama
Sean Taylor

19.CQS Management

AUM 31 May 06 US$4.73bn
AUM 30 Nov 05 US$4.58bn
Location London
Fund Name Strategy/style Founders/Principals
CQS Convertible and Quantitative Strategies Fund
CQS Capital Structure Arbitrage Fund
CQS Directional Opportunities Fund
Convertible and equity arbitrage, market neutral
Relative value credit arbitrage
Michael Hintze
Gary McConnell
Mark Conway
Mark Benson

20.M&G Investments

AUM 31 May 06 US$4.7bn (1)
AUM 30 Nov 05 US$4.2bn (1)
Location London
Fund Name Strategy/style Founders/Principals
Episode Global Macro Tony Gaughan
Dave Fishwick

Comments (1) US$4bn in a managed account, balance external funds

 

21.Egerton Capital

AUM 31 May 06 N/A
AUM 30 Nov 05 US$4.0bn (est)
Location London
Fund Name Strategy/style Founders/Principals
Egerton Capital European Fund
Egerton European Dollar Class A
Egerton European Equity
Long/short European equity John Armitage

Comments Declined to participate. All funds closed.

 

22.Cantillon Capital Management

AUM 31 May 06 US$4.0bn
AUM 30 Nov 05 N/A
Location New York, London
Fund Name Strategy/style Founders/Principals
Cantillon Europe
Cantillon World
Event driven long/short equity global William van Mueffling
Rupert Tyer

23.Aspect Capital

AUM 31 May 06 US$3.7bn
AUM 30 Nov 05 US$2.37bn (1)
Location London
Fund Name Strategy/style Founders/Principals
Aspect Diversified Fund
Aspect Master Fund
Aspect Trading Fund
Aspect Equity Long/Short Fund
Aspect Currency Fund
Systematic global futures trading
Systematic multi-strategy
Systematic global futures trading
Systematic pan-European equity
Systematic currency trading
Anthony Todd
Martin Lueck
Michael Adam
Robert Wakefield

Comments (1) nominal figures, not cash

 

24.RAB Capital

AUM 31 May 06 US$3.62bn
AUM 30 Nov 05 US$2.62bn
Location London
Fund Name Strategy/style Founders/Principals
RAB Special Situations Fund
RAB Energy Fund
RAB Europe Fund
RAB Emerging Europe
RAB UK Fund
Opportunistic trading
Long/short fixed income
Long/short equity
Long/short equity
Long/short equity
Michael Alen-Buckley
Philip Richards

Comments AUM as at 311205

 

25.Julius Baer

AUM 31 May 06 US$3.2bn
AUM 30 Nov 05 US$2.57bn
Location London
Fund Name Strategy/style Founders/Principals
JB Diversified Fixed Income
JB Global Rates
JB Credit and Emerging Markets
JB Convertible and High Yield
Relative value using fixed income and FX
Global macro (using fixed income and FX strategies)
Corporate and Sovereign investments with FX overlay
Long/short using convertible and high bonds and associated instruments
Tim Haywood/Tom O'Shea
Adrian Owens/Andrew Snowball
Paul McNamara/Darren Reece
Henry Hale /Greg Hopper

Please download the pdf for the full list