Who’s Delivering Alpha?

By Jennifer Leigh Parker for CNBC.com
Who’s Delivering Alpha?
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Many of the world’s most powerful hedge fund managers are gathering under one roof this fall for the much-anticipated conference in Manhattan. The hot topic on the agenda – apart from emerging markets, credit yields, and commodities futures – will be to see who’s really delivering alpha. The metric used to measure a portfolio manager’s added value; “Alpha” is also a way for managers to size each other up. Alpha is all about outperforming your benchmark, be it the volatile stock market, or simpl
Photo: Nikada | Vetta | Getty Images

Many of the world’s most powerful hedge fund managers are gathering under one roof this fall for the much-anticipated “Delivering Alpha” conference in Manhattan, presented by CNBC and Institutional Investor magazine. The hot topic on the agenda — apart from emerging markets, credit yields, and commodities futures — will be to see who’s really delivering alpha.

The metric used to measure a portfolio manager’s added value — “Alpha” — is also a way for managers to size each other up. Alpha is all about outperforming your benchmark, be it the volatile stock market, or simply returns on cash.

With the industry not what it once was — less leverage and more SEC involvement — delivering alpha is now considered the exception rather than the norm. Hedge funds are up just 1.2% year-to-date through July, according to Hedge Fund Research, lagging the S&P’s roughly 6.5% gain through July.

Many of the conference attendees are considered industry icons for outperforming their peers. Click ahead to see the Hedge Fund elite, and how much they’re managing.

Note: Assets Under Management, AUM are reported as of end of Q2, 2011 (6/30/2011)

By Jennifer Leigh Parker
Posted 12 September 2011

Boaz Weinstein
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Founder,Saba Capital ManagementAUM: $3.3 billion Strategy: Credit Arbitrage Launch Date: 2009Headquarters: New York CityAlma MaterBA in Philosophy – University of MichiganReputed Master Chess PlayerFormer Deutsche Bank Trader
Photo: Saba Capital Management

Founder,Saba Capital Management
AUM: $3.3 billion
Strategy: Credit Arbitrage
Launch Date: 2009
Headquarters: New York City

Alma Mater
BA in Philosophy – University of Michigan

Reputed Master Chess Player
Former Deutsche Bank Trader

Leon Cooperman
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Chairman and CEO, Omega Advisors AUM: $6 billion Strategy: Long-Short Equity Launch Date: 1991 Headquarters: New York City Alma Mater BA - Hunter College MBA - Columbia University
Photo: Omega Advisors

Chairman and CEO, Omega Advisors
AUM: $6 billion
Strategy: Long-Short Equity
Launch Date: 1991
Headquarters: New York City

Alma Mater
BA - Hunter College
MBA - Columbia University

Philip Falcone
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Founder, Harbinger Capital Investments AUM: $6.1 billion Core Strategies: Event Driven; Distressed/BankruptcyLaunch Date: 2001Headquarters: New York City
Photo: Harbinger Capital Investments

Founder, Harbinger Capital Investments
AUM: $6.1 billion
Core Strategies: Event Driven; Distressed/Bankruptcy
Launch Date: 2001
Headquarters: New York City

Alma Mater
BA, Economics – Harvard University

Jim Chanos
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President and Founder, Kynikos Associates AUM: $6.5 billion Strategy: EH – Short Only and Long-Short Launch Date: 1985 Headquarters: New York City Alma Mater BA – Yale University
Photo: Kynikos Associates

President and Founder, Kynikos Associates
AUM: $6.5 billion
Strategy: EH – Short Only and Long-Short
Launch Date: 1985
Headquarters: New York City

Alma Mater
BA – Yale University

Anne Popkin
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Symphony Asset Management AUM: $8.9 billion Strategy: Five hedge funds managed using Long-Short Credit, Convertible Arbitrage, Credit Opportunities, Equity Market Neutral, Equity Long-Short Launch Date: 1994 Headquarters: San Francisco, CA Alma Mater BA — Applied Mathematics and Economics from Harvard University. MBA — Kellogg School of Management at Northwestern University.
Photo: Symphony Asset Management

Symphony Asset Management
AUM: $8.9 billion
Strategy: Five hedge funds managed using Long-Short Credit, Convertible Arbitrage, Credit Opportunities, Equity Market Neutral, Equity Long-Short
Launch Date: 1994
Headquarters: San Francisco, CA

Alma Mater
BA — Applied Mathematics and Economics from Harvard University
MBA — Kellogg School of Management at Northwestern University

William Ackman
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Founder and CEO, Pershing Square Capital Management AUM: $9 Billion Strategy: Managing three Equity Hedge-Fundamental Value Funds Launch Date: 2004 Headquarters: New York City Alma Mater BA — Harvard College, Magna Cum Laude MBA — Harvard Business School
Photo: Pershing Square Capital Management LP

Founder and CEO, Pershing Square Capital Management
AUM: $9 Billion
Strategy: Managing three Equity Hedge-Fundamental Value Funds
Launch Date: 2004
Headquarters: New York City

Alma Mater
BA — Harvard College, Magna Cum Laude
MBA — Harvard Business School

Bruce Richards
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President and CEO, Marathon Asset Management AUM: $10 billion Strategy: Global Credit Launch Date:1998 Headquarters: New York City Alma Mater BA in Economics — Tulane University
Photo: Marathon Asset Management  

President and CEO, Marathon Asset Management
AUM: $10 billion
Strategy: Global Credit
Launch Date:1998
Headquarters: New York City

Alma Mater
BA in Economics — Tulane University

Marc Lasry
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Chairman and CEO of Avenue Capital AUM: $12.4 billion Strategy: Event-Driven – Distressed Debt Launch Date: 1995 Headquarters: New York City Alma Mater BA — History, Clark University J.D. — New York Law School
Photo: Avenue Capital

Chairman and CEO of Avenue Capital
AUM: $12.4 billion
Strategy: Event-Driven – Distressed Debt
Launch Date: 1995
Headquarters: New York City

Alma Mater
BA — History, Clark University
J.D. — New York Law School

Thomas Steyer
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Senior Managing Member, Farallon Capital Management AUM: $20 billion Strategy: Undisclosed Launch Date: 1986 Headquarters: San Francisco, CA Alma Mater BA in Economics & Political Science, Yale University MBA — Stanford’s Graduate School of Business
Photo: Farallon Capital Management,  LLC

Senior Managing Member, Farallon Capital Management
AUM: $20 billion
Strategy: Undisclosed
Launch Date: 1986
Headquarters: San Francisco, CA

Alma Mater
BA in Economics & Political Science, Yale University
MBA — Stanford’s Graduate School of Business

Pierre Lagrange
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Co-Founder and Partner, GLG Partners AUM: $23 billion Strategy: 68 funds invested in equity, macro, emerging markets, credit, and convertible bond and strategies Launch Date: 1995 Headquarters: London Alma Mater: MA — Engineering at Solvay Business School, Brussels.
Photo: GLG Partners LP

Co-Founder and Partner, GLG Partners
AUM: $23 billion
Strategy: 68 funds invested in equity, macro, emerging markets, credit, and convertible bond and strategies
Launch Date: 1995
Headquarters: London

Alma Mater:
MA — Engineering at Solvay Business School, Brussels

Laurence Fink
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Chairman and CEO, BlackRock Hedge Fund AUM: $25 billion Total Firm AUM: $3.6 Trillion Strategy: 30 Funds, Multi-Strategy Launch Date: 1988 Headquarters: New York City Alma Mater BA — Political Science, UCLA, class of 1974 MBA — Concentration in real estate, UCLA
Photo: BlackRock

Chairman and CEO, BlackRock
Hedge Fund AUM: $25 billion
Total Firm AUM: $3.6 Trillion
Strategy: 30 Funds, Multi-Strategy
Launch Date: 1988
Headquarters: New York City

Alma Mater
BA — Political Science, UCLA, class of 1974
MBA — Concentration in real estate, UCLA

Peter Briger
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Principal and Co-Chairman, Fortress Investment Group Hedge Fund AUM: $12.7 billionTotal Firm AUM: $43.8 billion Strategies: 11 hedge funds – dedicated to Global Macro, Commodities and Asia Macro. 4 hedge funds are dedicated to Distressed Credit Strategies Launch Date: 1998 Headquarters: New York City Alma Mater B.A. — Princeton University M.B.A. — Wharton School of Business
Photo: Fortress Investment Group LLC

Principal and Co-Chairman, Fortress Investment Group
Hedge Fund AUM: $12.7 billion
Total Firm AUM: $43.8 billion
Strategies: 11 hedge funds – dedicated to Global Macro, Commodities and Asia Macro. 4 hedge funds are dedicated to Distressed Credit Strategies
Launch Date: 1998
Headquarters: New York City

Alma Mater
B.A. — Princeton University
M.B.A. — Wharton School of Business

Tomilson Hill
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CEO, Blackstone Marketable Alternative Asset Management AUM: $37.2 billion Strategy: Multi-Strat Launch Date: 1990 Headquarters: New York City Alma Mater: Undergrad — Harvard College MBA — Harvard Business School
Photo: Blackstone Marketable  Alternative Asset Management

CEO, Blackstone Marketable Alternative Asset Management
AUM: $37.2 billion
Strategy: Multi-Strat
Launch Date: 1990
Headquarters: New York City

Alma Mater:
Undergrad — Harvard College
MBA — Harvard Business School

Clifford Asness, Ph.D.
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Managing and Founding Principal, AQR Capital Management AUM: $40 billion Strategy: Mutli-Strat Launch Date: 1998 Headquarters: Greenwich, CT Alma Mater BS in Economics — Wharton School BS in Engineering — Moore School of Electrical Engineering MBA and a Ph.D. in Finance from the University of Chicago
Photo: AQR Capital Management

Managing and Founding Principal, AQR Capital Management
AUM: $40 billion
Strategy: Multi-Strat
Launch Date: 1998
Headquarters: Greenwich, CT

Alma Mater
BS in Economics — Wharton School
BS in Engineering — Moore School of Electrical Engineering
MBA and a Ph.D. in Finance from the University of Chicago

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