Hedge funds are the wild cards of financial markets. Some sharply criticize their activities, but others say they bring valuable diversity to markets and act as shock absorbers against volatility.
The sector saw it's best results since 2013 last year, producing an 8.5% return, up from 5.4% in 2016. But despite the stronger outlook, back-to-back losses in recent months caused by trade disputes, tech sector setbacks, and interest-rate hikes by the Federal Reserve have dampened returns.
Even in the midst of these adverse conditions hedge funds are still a formidable power, wielding billions of dollars in assets and significant influence in financial markets.
Here's a list of the biggest funds in the US, created by intelligence firm HFM and ranked by assets under management (AUM).
10. Baupost Group - $29.5 billion AUM
Headquarters: Boston and London
Baupost Group is one of the largest hedge funds in the world. Founded in 1982 by a Harvard professor and his partners, the fund moved into Europe in 2011 to take advantage of opportunities from the government debt crisis there. Seth Klarman is president and CEO.
9. Davidson Kempner Capital Management - $30.9 billion AUM
Headquarters: New York
Davidson Kempner Capital Management is headquartered in New York with offices in Dublin and Hong Kong. The fund was founded in 1983 and has around 315 employees across its offices. Thomas L. Kempner, Jr. is a co-executive managing member.
8. Adage Capital Management - $32 billion AUM
Headquarters: Boston
This Boston-based fund focuses on managing S&P 500 assets, primarily for endowments and foundations like the American Red Cross and the Getty Foundation. They have a strong record on returns and have comfortably outperformed the S&P 500 index in each of the last 15 years. Phillip Gross is the managing director.
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