The 50 largest US managers

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US

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elcome to the third edition of The

Hedge Fund Journal’s

US

50 published

in association with Newedge Prime

Brokerage Group. Much like its European equivalent,

the Europe50, the

US

50 is a listing of the 50 largest

US single hedge fund managers ranked by assets

under management at 31 December 2011.

Since the second edition of the

US

50 was

published in March 2010 the hedge fund industry

has recovered further in terms of assets under

management, returning to just over the $2 trillion

level, according to data from Hedge Fund Research.

The third edition of the

US

50 comes after a period of

initially strong investment performance followed by

a more volatile market environment, punctuated by

brief periods of gains and sudden investment losses.

Many of the

US

50 from two years ago are still

present in the third edition, although the relative

ranking of many has certainly changed. On a

comparative basis, most hedge fund firms have

gained assets over the past two years though there

are a number that have shrunk notably. Sometimes

this is due to investors withdrawing cash after

a period of fund drawdowns, other times it is

because a particular strategy may have fallen out of

favour. Conversely, the attractions of a strategy can

certainly help to attract investors.

Macro attracts investors

This is clearly the case with global macro and the

rise of Bridgewater Associates to pole position in

the

US

50 and indeed the global hedge fund sector.

Founded by Ray Dalio in 1975, Bridgewater rose to

the number one position in our 2012 survey: it now

manages $76.1 billion in hedge fund assets (plus a

further $45 billion in non-hedge strategies). That

marks a stunning 69% rise in assets from 31 January

2010.

The rise of Bridgewater and its reputation for being

a firm with a unique culture of excellence coincides

with the continued burst of allocations to macro

strategies. This has also happened in Europe where

macro specialist Brevan Howard Asset Management

is near the top of the leader board with $33 billion

in AUM.

“Macro strategies continue to be popular with

investors,” says Robert Kaplan, chief investment

officer of Permal Asset Management. “You have to

have a global perspective with an appreciation of

economic and political factors. It is a strategy that

continues to attract most of the assets. We are in

a period of lower volatility, but between events

on the calendar. There are events that will cause

investors to have jitters. In the fourth quarter the

news from Europe on refinancing. Investors are

cognisant of all the macro factors playing on

markets, so they are allocating more to macro

strategies than to all the others.”

The surge of investors embracing macro managers

was more than enough for Bridgewater to dethrone

J.P. Morgan Asset Management, the leader in the

US

50 . This time JPMAM had $45 billion

in AUM, down from $54 billion in the 2010 survey.

Coming in third and fourth place respectively were

Ziff Capital Management and BlackRock.

Och-Ziff moves up to third place from fifth with a rise

in assets to $29 billion, while BlackRock jumps to

fourth from eighth with assets of $28 billion.

Residing at fifth place in the

US

50 is the venerable

Soros Fund Management. It has estimated AUM of

about $25 billion. With the firm recently converting

to a family office and returning funds to investors,

Soros FM will be disappearing from the league

table of leading managers. Indeed, in early April

it was confirmed that Jonathan Soros, the son of

founder George Soros, now 82, is setting up a family

office of his own. Changing regulations, including

registration and asset position disclosures affecting

hedge funds in the US, are expected to drive the

evolution of new structures for the foreseeable

future. Being less burdensome with respect to

regulation and disclosure, the family office structure

looks certain to enjoy growing appeal for both

established wealth creators and investors able to

allocate substantial sums of capital.

Varied strategy hedge funds

The flow of funds to macro and commodity trading

advisor strategies reflects how managers in these

areas feel comfortable providing investors with

active liquidity. Macro funds, in particular, have

matched that liquidity with strong returns even

if CTAs have found it much more difficult to find

trends and harness them to generate performance.

Post-2008 it is no surprise why investors continue to

prefer strategies concentrated on the liquid end of

markets.

Among the hedge fund firms in the top half of the

US

50 , in particular, there are a substantial number

which employ a multi-strategy approach to running

money. BlackRock, for example, has expanded far

beyond its roots and now offers a wide variety of

strategies. Its single manager hedge funds sit within

BlackRock Alternative Investors, a $100 billion-plus

colossus that also includes funds of hedge funds,

commodities and real estate.

“The leading hedge funds are by and large firms

with a multi-strategy flavour,” says a portfolio

and access to plentiful liquidity. “It shows the way

forward is to be a multi-strategy fund. If investors

want to avoid funds of funds they can go to the

big names and get a lot of options. The top hedge

funds have become, shall we say, varied strategy

with the name recognition that investors can feel

comfortable with.”

It is not to say, however, that all firms embracing a

multi-strategy investment style have performed well

or grown assets. Perhaps the most notable among

these firms is Paulson & Co. Though John Paulson

profited mightily from the US sub-prime implosion,

a raft of new funds and new strategies in existing

funds have endured an extremely chequered run.

The result is that Paulson’s assets fell to $22.6

billion from $32 billion in 2010, lowering its

ranking to seventh from third. In a similar vein,

DE Shaw Group has lost substantial ground in

terms of AUM even though the firm has introduced

more advantageous terms on some funds for its

institutional investor client base.

AUM, fund numbers growing

But the overall picture for US hedge funds is

one of growth, both in terms of the new funds

being launched and the assets being allocated to

managers, data from HFR shows. Indeed, there is

growing anecdotal evidence that funds of hedge

funds are investing more and more in smaller

managers in order to bolster their value proposition

to investors.

“The first thing to say about flow trends is that we

see investors coming back to hedge funds,” says

Stefan Keller, head of managed account platform

research and external relations with Lyxor Asset

Management. “The third quarter of 2011 was

terrible for outflow, but the fourth quarter saw

recovery and that carried on through January and

February. March was stabilising but on a rising

trend. Overall, the first quarter of 2012 shows a

stronger continuation of what we saw begin in the

fourth quarter of last year.”

Many readers will realise that the US has a stringent

legal framework in terms of what information funds

can and cannot provide. For this reason, many of the

hedge funds contacted for this survey were anxious

to avoid doing anything that could be construed as

solicitation. Though a majority of firms were prepared

to provide AUM data, they were more reluctant to

provide information about fund names, strategies

and portfolio managers. As a result, The Hedge Fund

Journal has sourced this information from other

sources and sought to verify it where possible.

In closing, we would like to thank Newedge Prime

The US50

In association with Newedge Prime Brokerage Group

BILL McINTOSH

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Pure Alpha strategy

Pure Alpha Major Markets strategy All Weather 12% strategy

Ray Dalio, Bob Prince, Greg Jensen

Global Macro Ray Dalio Bob Prince Greg Jensen Founders/Principals Strategy/style Fund Manager(s) Size ($b) Principal Fund(s)

1 Bridgewater Associates

$57.1 bn $14.2 bn $4.8 bn AUM 31 December 11 $76.1 bn AUM 31 January 10 $45.0 bn LocationWestport, CT AUM 31 December 11 $45.0 bn AUM 31 January 10 $54.0 bn

LocationNew York, NY

Not disclosed Not disclosed Relative Value

Equity Long/Short Macro

Distressed Securities

Merger Arbitrage/Event Driven Short Selling Not disclosed Founders/Principals Strategy/style Fund Manager(s) Size ($b) Principal Fund(s)

2 JP Morgan Asset Management

Not disclosed AUM 31 December 11 $28.0 bn AUM 31 January 10 $21.4 bn (est)

Not disclosed Not disclosed Diversified Fixed Income European Opportunities Credit Emerging Europe Natural Resources UK Emerging Companies UK Equity Larry Fink Founders/Principals Strategy/style Fund Manager(s) Size ($b) Principal Fund(s)

4 BlackRock

Not disclosed OZ Master Fund

OZ Europe Master Fund OZ Asia Master Fund

OZ Global Special Investments Master Fund

Daniel Och Multi-Strategy Daniel Och

Founders/Principals Strategy/style

Fund Manager(s) Size ($b)

Principal Fund(s)

3 Och-Ziff Capital Management

Not disclosed AUM 1 January 12 $29.0 bn AUM 31 January 10 $24.0 bn

AUM 31 December 11

$25.0 bn (est)

AUM 31 January 10

$27.5 billion (est)

Quantum Fund Not disclosed Global Macro George Soros

Principal Fund(s)

5 Soros Fund Management

Not disclosed

(4)

AUM 31 December 11

$24.0 bn

AUM 31 January 10

$22.0 bn

LocationBoston, MA

Not disclosed Not disclosed Equity Value Seth Klarman

Founders/Principals Strategy/style Fund Manager(s) Size ($b) Principal Fund(s)

6 Baupost Group

Not disclosed AUM 31 December 11 $22.6 bn AUM 1 January 10 $32.0 bn

Paulson Advantage Funds Paulson Credit Opportunities Funds Paulson Partners Funds

Paulson Recovery Funds Paulson Gold Fund

John Paulson Not disclosed John Paulson

7 Paulson & Co

Not disclosed Not disclosed Multi-Strategy John M. Angelo

Michael L. Gordon Founders/Principals Strategy/style Fund Manager(s) Size ($b) Principal Fund(s)

8 Angelo, Gordon & Co

Not disclosed AUM 31 December 11 $20.0 bn (est) AUM 31 December 09 $15.0 bn

LocationEast Setauket, NY

Renaissance Institutional Diversified Alpha Fund

Renaissance Institutional Equities Fund Renaissance Institutional Futures Fund Renaissance Medallion Fund

Not disclosed Statistical Arbitrage Long/Short Equity Equity Market Neutral

James Simons Founders/Principals Strategy/style Fund Manager(s) Size ($b) Principal Fund(s)

9 Renaissance Technologies

LocationSan Francisco, CA

Not disclosed Not disclosed Credit

Merger Arbitrage Long/Short Equity Special Situations Real Estate Thomas Steyer Andrew Spokes Founders/Principals Strategy/style Fund Manager(s) Size ($b) Principal Fund(s)

10 =

Farallon Capital Management

Not disclosed

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AUM 31 December 11

$19.2 bn

AUM 31 January 10

$16.4 bn

Elliott Associates, L.P. Elliott International, Limited

Not disclosed Multi-Strategy Paul Singer

Principal Fund(s)

10 =

Elliott Management Corp

King Street Capital, L.P. King Street Capital, Ltd

Brian J. Higgins O. Francis Biondi Jr. Long/Short Credit Event Driven Brian J. Higgins O. Francis Biondi Jr. Founders/Principals Strategy/style Fund Manager(s) Size ($b) Principal Fund(s)

12 King Street Capital Management

$6.2 bn $10.5 bn AUM 31 December 11 $16.0 bn (est) AUM 31 January 10 $10.0 bn (est)

Davidson Kempner European Partners Fund Davidson Kempner Event Driven Equities Fund Davidson Kempner Institutional Partners Fund Davidson Kempner Distressed Opportunities Fund

Not disclosed Event Driven Merger Arbitrage Long/Short Convertible Arbitrage Thomas Kempner Marvin Davidson Founders/Principals Strategy/style Fund Manager(s) Size ($b) Principal Fund(s)

13 Davidson Kempner Capital Management

Not disclosed AUM 31 December 11 $15.3 bn AUM 31 December 09 $17.8 bn (est)

Global Alpha

North American Equity Opportunities

Not disclosed Long/Short Equity Macro Not disclosed Founders/Principals Strategy/style Fund Manager(s) Size ($b) Principal Fund(s)

14 Goldman Sachs Asset Management

Not disclosed AUM 31 December 11 $22.0 bn (est) AUM 1 January 10 $23.6 bn

D. E. Shaw Multi-Asset Fund D. E. Shaw Terella Fund D.E. Shaw Composite Fund D.E. Shaw Heliant Fund D.E. Shaw Oculus Fund

Not disclosed Multi-Strategy Statistical Arbitrage Event Driven Macro

Fixed Income Arbitrage

David E Shaw Founders/Principals Strategy/style Fund Manager(s) Size ($b) Principal Fund(s)

15 =

DE Shaw Group

Not disclosed

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AUM 31 December 11

$15.0 bn

AUM 1 January 10

$14.0 bn

Moore Emerging Market Fund Moore Global Investors Fund Moore Macro Managers Fund

Louis Bacon Greg Coffey Global Macro Emerging Markets Louis Bacon Founders/Principals Strategy/style Fund Manager(s) Size ($b) Principal Fund(s)

15 =

Moore Capital

Not disclosed AUM 31 December 11 $14.5 bn * AUM 31 January 10 Not disclosed LocationGreenwich, CT Not disclosed

*Hedge Fund assets have been scaled to 10% volatility

Not disclosed Not disclosed Cliff Asness David Kabiller John Liew Founders/Principals Strategy/style Fund Manager(s) Size ($b) Principal Fund(s)

17 AQR Capital Management

Not disclosed AUM 31 December 11 $13.8 bn AUM 31 January 10 $11.5 bn LocationGreenwich, CT

Viking Global Equities Not disclosed Long/Short Equity Andreas Halvorsen David Ott Founders/Principals Strategy/style Fund Manager(s) Size ($b) Principal Fund(s)

19 Viking Global Investors

York Multi-Strategy York Credit Opportunities York European Opportunities York Asian Opportunities York Total Return

Not disclosed Event Driven James Dinan

Principal Fund(s)

20 York Capital Management

Not disclosed AUM 31 December 11 $14.0 bn AUM 31 January 10 $9.0 bn (est) LocationBoston, MA

Convexity Capital Offshore Not disclosed Multi-Strategy Jack Meyer

Principal Fund(s)

18 Convexity Capital Management

Not disclosed

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AUM 31 December 11

$13.5 bn

AUM 31 January 10

$7.5 bn

Millennium International / USA Not disclosed Multi-Strategy Israel Englander

21 Millennium Partners

Not disclosed AUM 31 December 11 $13.2 bn AUM 31 December 09 $18.6 bn

US Distressed Strategy Europe Distressed Strategy Asia Distressed Strategy

Rob Symington Richard Furst Mark R. Harris

Distressed Marc Lasry Sonia E. Gardner Founders/Principals Strategy/style Fund Manager(s) Size ($b) Principal Fund(s)

22 Avenue Capital

$5.9 bn $4.1 bn $1.8 bn AUM 31 December 11 $12.6 bn AUM 31 January 10 $11.9 bn

LocationLos Angeles, CA

Not disclosed Not disclosed Multi-Strategy / Event Driven (Credit Focus) Joshua Friedman Mitchell Julis Founders/Principals Strategy/style Fund Manager(s) Size ($b) Principal Fund(s)

23 Canyon Capital Advisors

Eton Park Overseas Fund Eton Park Offshore Fund Eton Park Master Fund

Not disclosed Multi-Strategy Eric Mindich

Principal Fund(s)

24 =

Eton Park Capital Management

LocationShort Hills, NJ

Not disclosed Distressed Event Driven David Tepper Founders/Principals Strategy/style Fund Manager(s) Size ($b) Principal Fund(s)

24 =

Appaloosa Management

Not disclosed Appaloosa Investment I Palomino Fund

Thoroughbred Master Fund Thoroughbred Fund LP

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AUM 31 December 11

$12.0 bn (est)

AUM 31 January 10

$12.5 bn (est)

LocationStamford, CT

International Fund Steven A Cohen Multi-Strategy Long/Short Equity Fixed Income Credit Global Macro Convertible Bonds Emerging Markets Steven A Cohen Founders/Principals Strategy/style Fund Manager(s) Size ($b) Principal Fund(s)

24 =

SAC Capital Advisors

Not disclosed AUM 31 December 11 $11.0 bn AUM 31 January 10 $10.5 bn (est) LocationBoston, MA Archipelago Partners Bay Pond Partners Iguazu Partners Pagosa Partners Placer Creek Partners

Not disclosed Multi-Strategy Long/Short Equity Commodities Emerging Markets Perry Traquina Founders/Principals Strategy/style Fund Manager(s) Size ($b) Principal Fund(s)

25 =

Wellington Management

Not disclosed AUM 31 December 11 $11.0 bn AUM 31 January 10 $12.5 bn LocationChicago, IL

Citadel Kensington Global Strategies Fund Ltd. Citadel Wellington LLC

Not disclosed Multi-Strategy Ken Griffin

25 =

Citadel LLC

Not disclosed AUM 31 December 11 $11.0 bn AUM 1 January 10 $9.3 bn LocationBoston, MA

Not disclosed Not disclosed Not disclosed Jonathon Jacobson

Principal Fund(s)

25 =

Highfields Capital Management

Not disclosed Not disclosed Credit Steven Tananbaum

Principal Fund(s)

30 GoldenTree Asset Management

Not disclosed

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AUM 1 January 12

$10.3 bn

AUM 31 January 10

$11.5 bn

LocationGreenwich, CT

The Tudor BVI Global Portfolio L.P.

Tudor Tensor Portfolio Ltd. & Tensor Managed Accounts

Paul Tudor Jones Steve Evans

Global Macro

Quantitative Managed Futures

Paul Tudor Jones

Principal Fund(s)

31 Tudor Investment Corporation

$8.1 bn $1.1 bn AUM 31 December 11 $10.0 bn AUM 31 January 10 Not disclosed

Anchorage Capital Partners Funds Anchorage Short Credit Funds Anchorage Illiquid Opportunities Funds

Kevin Ulrich Tony Davis Dan Allen Credit-Focused Long/Short Distressed Special Situations Kevin Ulrich Tony Davis Founders/Principals Strategy/style Fund Manager(s) Size ($b) Principal Fund(s)

32 =

Anchorage Capital Group L.L.C.

Not disclosed AUM 31 December 11 $10.0 bn (est) AUM 31 January 10 $10.0 bn (est) LocationDallas, TX Maverick Fund Maverick Levered Fund Maverick Long Fund Maverick Neutral Fund Maverick Neutral Levered Fund

Lee Ainslie III Long/Short Equity Lee Ainslie III

32 =

Maverick Capital

Not disclosed AUM 31 December 11 $10.0 bn (est) AUM 31 January 10 $10.5 bn (est) LocationGreenwich, CT

ESL Partners Not disclosed Distressed Edward Lampet

William Crowley Founders/Principals Strategy/style Fund Manager(s) Size ($b) Principal Fund(s)

32 =

ESL Investments

Not disclosed AUM 31 December 11 $10.0 bn (est) AUM 31 January 10 Not disclosed

Pershing Square Fund Pershing Square II

Pershing Square International

Not disclosed Not disclosed William Ackman

Principal Fund(s)

32 =

Pershing Square Capital Management

Not disclosed

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AUM 1 January 12

$9.3 bn

AUM 1 January 10

$7.3 bn

Caxton Global Investments A.R.T. International Investors Caxton HAWK (Diversified) Wadhwani Asset Management

Andrew E. Law Aaron Sosnick Jeffrey Enslin Sushil Wadhwani Global Macro Statistical Arbitrage Quantitative Macro Quantitative Macro

Bruce Kovner (retired)

Peter D'Angelo (retired)

Andrew E. Law Founders/Principals Strategy/style Fund Manager(s) Size ($b) Principal Fund(s)

36 Caxton Associates LP

$7.1 bn AUM 31 December 11 $9.0 bn (est) AUM 31 January 10 $10.5 bn (est) LocationBoston, MA

Brookside Capital Partners Fund Brookside Capital Partners Fund II Sanakty Advisors Prospect Harbour Absolute Return Capital Partners

Not disclosed Not disclosed William Romney Coleman Andrews Eric Kriss Founders/Principals Strategy/style Fund Manager(s) Size ($b) Principal Fund(s)

37 =

Bain Capital/Brookside Capital Partners

Not disclosed AUM 31 December 11 $8.8 bn (est) AUM 31 January 10 $8.8 bn (est)

Cerberus International Cerberus Partners Styx International Styx Partners

Stephen Feinberg Distressed Stephen Feinberg William L. Richter Founders/Principals Strategy/style Fund Manager(s) Size ($b) Principal Fund(s)

39 Cerberus Capital Management

Not disclosed AUM 31 December 11 $9.0 bn (est) AUM 31 January 10 $8.5 bn (est) LocationBoston, MA

GMO Aggressive Long/Short Strategy GMO Emerging Currency Hedge Fund GMO Fixed Income Hedge Fund GMO Multi-Strategy Fund GMO Credit Opportunities Fund

Not disclosed Long/Short Emerging Currency Fixed Income Multi-Strategy Credit Jeremy Grantham Richard Mayo Eyk van Otterloo

Principal Fund(s)

37 =

Grantham, Mayo, Van Otterloo (GMO)

Not disclosed AUM 01 January 12 $8.5 bn AUM 31 January 10 Not disclosed

Not disclosed Not disclosed Not disclosed John Overdeck

David Siegel Founders/Principals Strategy/style Fund Manager(s) Size ($b) Principal Fund(s)

40 =

Two Sigma Investments

Not disclosed

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AUM 31 December 11

$8.2 bn (est)

AUM 31 January 10

$7.0 bn (est)

Taconic Capital Partners Taconic Capital Partners 1.5 Taconic Market Dislocation Fund II Taconic Offshore Fund

Taconic Opportunity Fund

Not disclosed Not disclosed Kenneth Brody Frank Brosens Founders/Principals Strategy/style Fund Manager(s) Size ($b) Principal Fund(s)

42 Taconic Capital Advisors

Not disclosed AUM 31 December 11 $8.5 bn (est) AUM 31 January 10 Not Disclosed LocationAtlanta, GA

INVESCO ABS Oppoutunity Fund Invesco Absolute Return Fund

Invesco Large Cap Core Directional Long/Short Fund

Invesco Small Cap Core Directional Long / Short Fund

Invesco US Equity Market Neutral Fund

Not disclosed Not disclosed Charles Brady Martin L. Flanagan Founders/Principals Strategy/style Fund Manager(s) Size ($b) Principal Fund(s)

40 =

INVESCO Asset Management

Not disclosed AUM 1 January 12 $8.1 bn AUM 31 January 10 Not disclosed LocationEvanston, IL

Not disclosed Not disclosed Multi-Strategy

Event Driven Fixed Income Energy Alec Litowitz Ross Laser David Snyderman Founders/Principals Strategy/style Fund Manager(s) Size ($b) Principal Fund(s)

43 Magnetar Capital

Not disclosed AUM 31 December 11 $8.0 bn (est) AUM 31 January 10 $9.0 bn (est) LocationBoston, MA

Adage Capital Partners Not disclosed Not disclosed Phil Gross Robert Atchinson Founders/Principals Strategy/style Fund Manager(s) Size ($b) Principal Fund(s)

45 =

Adage Capital Management

Not disclosed AUM 31 December 11 $8.05 bn AUM 31 January 10 Not disclosed

Not disclosed Not disclosed Event Driven Kenneth Garschina

Michael Martino Founders/Principals Strategy/style Fund Manager(s) Size ($b) Principal Fund(s)

44 Mason Capital Management

Not disclosed

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AUM 31 December 11 $7.7 bn AUM 31 January 10 Not disclosed LocationRowayton, CT Graham K4D-15V Portfolio Graham Discretionary-6V Portfolio Graham Discretionary-12V Portfolio Graham Proprietary Matrix-10V Portfolio

Not disclosed Macro Kenneth G. Tropin

Principal Fund(s)

48 Graham Capital Management

$3.5 bn $680.8 m $911.1 m $764.6 m AUM 31 December 11 $7.5 bn AUM 31 January 10 Not disclosed

Third Point Offshore Fund, Ltd Third Point Partners L.P. Third Point Partners Qualified L.P. Third Point Ultra Ltd.

Daniel S. Loeb Event Driven

Equity Special Situations Credit Daniel S. Loeb Founders/Principals Strategy/style Fund Manager(s) Size ($b) Principal Fund(s)

49 =

Third Point Management

$4.4 bn $269 m $1.2 bn $1.1 bn AUM 31 December 11 $7.5 bn (est) AUM 31 January 10 Not disclosed

Greenlight Capital Greenlight Capital Offshore Greenlight Capital Qualified

Not disclosed Long/Short Equity Distressed David Einhorn Founders/Principals Strategy/style Fund Manager(s) Size ($b) Principal Fund(s)

49 =

Greenlight Capital

Not disclosed AUM 31 December 11 $8.0 bn AUM 31 January 10 $8.0 bn (est) LocationGreenwich, CT

Not disclosed Not disclosed Long/Short Equity Stephen Mandel

45 =

Lone Pine

Not disclosed AUM 31 December 11 $8.0 bn (est) AUM 31 January 10 Not disclosed

Marathon Asia Fund

Marathon Credit Opportunity Fund Marathon EM Opportunity Fund Marathon Securitized Credit Fund Marathon Special Opportunity Fund

Not disclosed Opportunistic Credit Bruce Richards Louis Hanover Founders/Principals Strategy/style Fund Manager(s) Size ($b) Principal Fund(s)

45 =

Marathon Asset Management

Not disclosed