The UK is home to some of the world’s top hedge funds, with London still a significant hub for the industry. Hedge funds in the UK are known for their diverse investment strategies and risk management techniques. They typically invest in a range of assets, including bonds, equities, derivatives, and commodities. They also employ a range of investment strategies, such as global macro as well as quantitative trading.
Which London Hedge Funds are worth keeping an eye on?
Here are some of the top hedge funds in the UK, in order of date of founding:
Egerton Capital
Founded in 1994, Egerton Capital focuses on long-term performance in liquid, large-cap, publicly traded equities. As of June 2023, it had over £11 billion in AUM and is registered with the US Securities and Exchange Commission (SEC) as well as regulated by the UK Financial Conduct Authority (FCA).
Marshall Wace
Marshall Wace was founded in 1997 by Paul Marshall and Ian Wace. Marshall previously worked at Mercury Asset Management, and Wace worked at Deutsche Bank. Marshall Wace has over £43 billion in assets under management (AUM) and over 400 employees. Its investment approach includes fundamental, systematic and quantitative strategies, and it specialises in long-short equity.
Landsdowne Partners
Founded in 1998 by Paul Ruddock and Steven Heinz, Landsdowne Partners is headquartered in London, and also works out of Vienna, Austria. Currently managed by Suzi Nutton and Brian Heyworth, it has around £38 billion in AUM.
Capula Investment Management
Based at Clarges Street in Mayfair, Capula Investment Management was founded in 2005 by Yan Huo and Masao Asai. It also has offices in the US, Singapore, Japan and Hong Kong, and its strategies include crisis alpa, macro, enhanced fixed income and absolute return investments.
Man Group
Man Group traces its lineage back to the 18th century, and its founder James Man, who started a sugar brokerage in London in 1783. It was launched in its current form in 2007 and currently has around £112 billion in AUM.
Rokos Capital Management
Founded in 2015 by Chris Rokos (a former Goldman Sachs trader who was also a co-founder of the Jersey-based hedge fund Brevan Howard in 2002), Rokos Capital Management is an Alternative Investment Fund Manager. As of 2023 is has an AUM of £108 billion, and employs over 200 personnel between its headquarters in London and its other offices in Singapore, Washington DC and New York.
Willis Towers Watson
Along with Man Group, Willis Towers Watson (branded WTW), is a hedge fund that has ties to the early days of trading. In 1828, Henry Willis first started working at the Baltic Exchange in London. Headquartered in London, it was founded in its current iteration in 2016, and has AUM of £100 billion.
The Future of Hedge Funds in the UK
Hedge Funds in the UK are regulated by the Financial Conduct Authority (FCA). Since the UK left the EU, London-based hedge funds have had to grapple with changing regulation and this has caused some difficulty. As a result, some US hedge funds have moved their operations to other European cities, such as Paris or Frankfurt.
London still remains a major international financial hub, however, and the number of hedge funds are set to increase over the coming years.
