Field Street Capital Management was the largest hedge fund manager based in the United Kingdom in 2023, by assets under management. Field Street Capital Management managed assets worth more than 297 billion U.S. dollars that year. The second-largest hedge fund manager was Citadel Investment Group, with assets under management of around 253 billion U.S. dollars. The UK was home to 34 of the largest hedge funds in the world. Fund managers in London accounted for 32 of these hedge funds. The world's largest hedge funds had an average value of 13.39 billion U.S. dollars. Behind the United States, the UK is the second-largest market for hedge fund managers in the world. More than a third of traditional hedge funds now invest in digital assets such as crypto. The United States has adopted this trend, having been a lead location for crypto-based hedge fund managers.
What is a hedge fund?
Hedge funds are an investment partnership made up of a fund manager and typically accredited investors who pool their funds together. Fund managers aim to achieve a low level of hedge fund net exposure in markets worldwide. Compared to other mutual funds, hedge funds invest more aggressively in a wider range of financial products to achieve high returns for investors.
Hedge fund management strategies
Equity long/short, multi-strategy, and credit are among the most used management strategies by assets under management of hedge funds worldwide. Multi-strategy hedge funds combine several investment strategies, which are typically unrelated and aimed to reduce the volatility of revenue streams. Individual portfolio managers decide on the range of markets to focus on within the hedge fund position allocation. A narrow focus involves activities such as trading specific precious metals, while a broader approach would involve trading all commodities. Equity strategies, on the other hand, involve taking long positions in perceived undervalued stocks and short positions in perceived overvalued stocks.
