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Top hedge funds lead industry assets to $1.3 Trillion mark

|Includes: JPMorgan Chase & Co. (JPM), OZM
Hedge fund industry assets in the United States for managers with more than $1 billion in assets under management grew by $115 billion during 2010, reaching $1.297 trillion. According to a recent survey by AR Magazine, the industry growth rate closely matched overall performance of hedge funds in the AR Composite during 2010, which averaged a 9.15% return.

While the $1.3 trillion mark is impressive, it is still a long way from the peak in July of 2008, when AR’s billion dollar plus top hedge fund list oversaw an impressive $1.675 trillion.

Not surprisingly, Ray Dalio’s Bridgewater Associates topped the list as the largest hedge fund manager with $59 billion in assets. Bridgewater’s assets soared by over $15.3 billion during 2010, thanks largely to the performance of its flagship hedge fund, the Bridgewater Pure Alpha Fund II, which retuned 44.8% during the year.

JPMorgan Asset Management and its hedge fund group Highbridge Capital Management claimed the second spot with $45.5 billion. It was followed by John Paulson’s Paulson & Co., which oversaw $36 billion at the end of the year.

Bridgewater, Highbridge Capital and Paulson & Co. held the same spots in the Wall Street Journal’s top hedge fund list for 2010, which tallied assets as of Jul 1st of 2010.

Rounding out the top five are George Soros’ global macro focused Soros Fund Management and Daniel Och’s multi-strategy shop, Och-Ziff Capital Management (NYSE: OZM).

Rank Institution Assets ($MM)
1 Bridgewater Associates LP $50,900
2 JP Morgan (Highbridge Capital Management) $41,100
3 Paulson & Co. $31,000
4 Soros Fund Management $27,000
5 Och-Ziff Capital Management $25,300
6 BlackRock $22,800
7 Angelo Gordon & Co. $22,700
8 The Baupost Group $22,000
9 Farallon Capital Management $20,000
10 King Street Capital Management $19,300