A quarter of all capital invested in hedge funds comes from the Billion Dollar Club – those institutions that invest $1bn or more in hedge funds. Collectively, the group invests $889bn as of May 2018, an 11% increase from the $802bn recorded in May 2017. The number of investors with $1bn or more invested in hedge funds has grown five times over the past year, with 47 new entrants joining the Club and 42 investors leaving it, pushing the total count of investors in the Club to 247. Private sector pension funds are now the most numerous members of the Billion Dollar Club, overtaking public pension funds. Although the Club has seen growth in numbers, average allocation to hedge funds from these investors has fallen from 16.0% of their assets to 15.2% in 2018.
- There are 247 investors that invest $1bn or more in hedge funds as of May 2018. Over the course of the past year, 47 institutions have entered and 42 have left the Billion Dollar Club.
- Collectively, the Billion Dollar Club allocates $889bn to the asset class, an 11% increase from the $802bn in allocations recorded in April 2017. This represents 25% of total hedge fund AUM.
- Private sector pension funds account for the greatest number of new entrants to the Club (10), and with 57 representatives form the largest group of investors in the Club.
- By region, Europe accounts for the greatest number of entrants into the Club (18) over the past 12 months, while North America saw the greatest number of investors which exited the Club (27).
- Although total allocated capital rose, the mean allocations of Billion Dollar Club members continue to fall – down from 16.8% in 2016 to 16.0% in 2017, and to 15.2% in 2018.
- Despite an improved environment for hedge funds, the Club has seen departures of prominent investors over recent years, including investors like CalPERS, NYCERS and Alaska Permanent Fund Corporation.