Germany is one of the most important economies in the EU and is home to some of the top hedge funds in Europe. Hedge funds in Germany are regulated by the Federal Financial Supervisory Authority (BaFin), the country’s financial regulatory authority. As of 2021, there are more than 1000 hedge funds in ,Europe, with Germany being one of the key markets for hedge fund investment.
Which German Hedge Funds are worth keeping an eye on?
Here are some of the top hedge funds in Germany, in order of date of founding:
DWS Investments
Originally founded in Hamburg in 1956, and previously a part of Deutsche Bank, DWS became an independent asset management company in 2018, and is now based in Frankfurt. It is one of the largest hedge funds managers in Germany, and offers fixed income, equity and multi-asset funds, with €859 billion of assets under management (AUM) as of June 2023.
Union Investment
Established in 1956, Union Investment is based in Frankfurt and as of June 2023, had €432 billion in AUM. Most of its assets under management are in fixed income and equity investments, but it also has real estate, infrastructure and alternative investments.
Hansainvest Hanseatische Investment
Founded in 1969, Hansainvest has offices in Hamburg and Frankfurt. It is one of the largest investment companies in Germany, with an AUM of €130 billion. The company’s hedge fund strategies include long/short equity and global macro.
Acatis Investment
Based in Frankfurt, with a branch in Switzerland, Acatis Investment describes itself as an independent fund boutique. It was established in 1994, and specialises in the strategy of ‘value investing’, based on the investment methodology of Warren Buffet and Benjamin Graham.
Allianz Global Investors
Headquartered in Frankfurt, Allianz Global Investors (or AlliantzGI), has 20 offices worldwide. It was founded in 1998 and offers equity, fixed-income, private market and multi-asset strategies. As of March 2023, had total AUM of €514 billion.
Lupus alpha
Founded in 2000 and based in Frankfurt, with a branch in ,Paris, this smaller asset management company invests in a range of asset classes, including equities, bonds, currencies, and commodities. It has €13.5 billion in AUM and 90 employees.
Aquila Capital
Part of Aquila Group and founded in 2001, Aquila Capital has an AUM of €14.7 billion, and employs over 650 personnel in 17 offices. It is headquartered in Hamburg and invests in renewable energy and green logistics, priding itself on its carbon neutral status since 2006.
Hamburg Group
Founded in 2007, and as the name suggests, based in Hamburg, Hamburg Group (or HT Group) focuses its investments in commercial and residential real estate. Previously called Hamburg Trust, 2013 saw the company create its own in-house management company, and it now also has an office in Vienna, Austria.
The future of Hedge Funds in Germany
Germany’s stable economy will likely continue to attract foreign investors over the coming years, cementing it’s place as an important European financial hub for hedge funds.
Hedge funds in Germany face strict regulatory scrutiny, particularly in the area of investor protection. This has led to greater transparency for hedge funds operating in the country, which will add to the already excellent reputation the country has as a home for global investments.
