The document provides information on the global and US hedge fund industries, with a focus on Connecticut's large hedge fund industry. Connecticut has the second largest hedge fund industry in the US, with $334 billion in assets under management. Within Connecticut, Greenwich is a major center for hedge funds due to its proximity to New York, lower taxes than New York, and high quality of life. Greenwich is home to large hedge funds like Bridgewater Associates and AQR Capital Management.

1. The$Hedge$Fund$Industry$in$Connecticut
February$2016
Prepared$by$The$Connecticut$Hedge$Fund$Association,$with$
assistance$from$the$Greenwich$Chamber$of$Commerce

2. The$Global$Hedge$Fund$Industry

3. Global$Hedge$Fund$Industry
• $3tn$in$AUM
• $355bn$added$in$2014
• +764$new$funds$created$in$2014
• F260$funds$closed$in$2014
• 3$out$of$every$4$$$is$now$from$institutions
• China$Investment$Corp.$is$largest$HF$investor$in$AsiaFPacific$region$($26bn).

4. Global$Hedge$Fund$Industry
61%21%
14%
4%
Breakdown$of$Managers$by$Location
North$America
Europe
AsiaFPacific
Rest$of$World

5. Global$Hedge$Fund$Industry
Manager$Headquarters Assets$under$Management$($bn)
North$America 1,923
Europe 560
AsiaFPacific 112
Rest$of$World 69
Hedge$Fund$Assets$by$Regional$Location

6. Global$Hedge$Fund$Industry
Manager$Country$Location Assets$under$Management$$($bn)
US 1,893
UK 440
Brazil 51
Hong$Kong 47
Sweden 39
France 34
Australia 33
Canada 26
Switzerland 25
Singapore 21
Breakdown$of$Hedge$Fund$Manager$Assets$by$Country$Location

7. The$US$Hedge$Fund$Industry

8. The$US$Hedge$Fund$Industry
• Started$in$1949$with$A.W$Jones$in$New$York.
• Home$to$8,500$hedge$funds,$managing$over$$1.7tn$(over$70%$of$the$global$
hedge$fund$industry).
• 46$of$the$50$states$have$some$hedge$fund$activity.
• 95% of$US$hedge$fund$assets$managed$from$10$leading$states.
• 40% of$USFbased$hedge$funds$are$in$New$York
• 55% of$all$institutional$capital$invested$in$hedge$funds$globally$is$from$USF
based$institutional$investors.

9. The$US$Hedge$Fund$Industry
Number$of$USFBased$Hedge$Fund$Managers$and$Hedge$Fund$Investors$by$State

10. The$US$Hedge$Fund$Industry
AUM$of$US$Based$Funds$of$Hedge$Funds$by$Manager$State
New$York
Connecticut
Illinios
California
Penn
Texas
Washington
Virginia
Florida
NY
CT

11. The$US$Hedge$Fund$Industry
State AUM$($bn)
New$York 838
Connecticut 334
California 155
Massachusetts 128
Illinois 76
Texas 53
New$Jersey 36
Minnesota 31
Florida 22
Penn 7

12. Hedge$Fund$Industry$Trends$&$Challenges
• Institutionalization$(3$of$every$4$dollars$invested$is$now$from$
institutions).
• Regulation$(SEC$registration$and$AIFMD$in$Europe).
• Largest$hedge$funds$attracting$most$of$the$assets.
• Liquid$alternatives

13. Connecticut’s$Hedge$Fund$Industry

14. Connecticut’s$Hedge$Fund$Industry
• At$$334bn,$CT$has$the$second$largest$hedge$fund$industry$in$the$US.
• CT$is$the$third$largest$center$for$hedge$funds$globally$by$AUM,$behind$only$New$York$
and$the$UK.
• Proximity$to$New$York,$a$more$favorable$tax$regime$compared$to$New$York$or$New$
Jersey,$and$quality$of$life$makes$CT$an$attractive$location.
• The$hedge$funds$in$Greenwich$and$the$surrounding$towns$(especially$Stamford)$
represent$an$“industry$cluster”.$$
• There$is$a$larger$business$ecosystem$that$has$grown$up$to$service$the$hedge$fund$firms.$$
These$service$firms$include,$investment$banks,$law$firms,$accounting$firms,$fund$
administrators,$custodian$banks,$technology$firms$and$more.
• The$Connecticut$Hedge$Fund$Association$was$established$in$2004$and$now$has$over$
4,000$individual$members.

15. Connecticut’s$Hedge$Fund$Industry
Firm City/Town AUM$($bn)
Bridgewater Associates Westport 151.5
AQR$Capital$Management Greenwich 24.9
Viking$Global$Investors Greenwich 18.2
Three$Largest$ConnecticutFBased$Hedge$Fund$Managers$by$Assets

16. Connecticut’s$Hedge$Fund$Industry
Sample$List$of$Connecticut$Hedge$Funds
AQR$Capital
Bridgewater$Associates
Chilton$Investment$Co.
Discovery$Capital
Ellington$Management
K2$Advisors
Lone$Pine$Capital
Tudor$Investment$Company
Viking$Global

17. Town$of$Greenwich

18. Greenwich:$Overview
• Settled$in$1640.
• Located$within$Fairfield$County,$Connecticut
• Population$of61,000,$with$an$average$density$of 930/mi2 (360/km2).
• Area$of 48$square$miles.
• Located$30$miles$northeast$of$New$York$City.

19. Greenwich:$Transportation
• Located$30$miles$northeast$of$New$York$City.
• 2$interstate$highways.
• 3$airports$service$Greenwich.
• Metro$North$commuter$rail$from$and$to$NYC.$(less$than$50$minutes$travel$
time)Fimportant$for$younger$reverse$commuters.
• Four$train$stations.

20. Greenwich:$Quality$of$Life
• 32$miles$of$coastline.$$A$boater’s$haven.
• 20$parks.
• 11$elementary$schools,$3$middle$schools$and$1$punlichigh$school;$six$
private$schools.
• 14$private$clubs.
• Fabulous$shops$and$restaurants$on$Greenwich$Avenue.
• Numerous$cultural$options$including$Greenwich$Symphony,$Greenwich$
Choral$Society,$Bruce$Museum$and$local$art$galleries.$

21. Greenwich:$Taxes,$Real$Estate$&$Business
• State$income$tax:$$Top$personal$income$tax$rate$of$6.7%$(vs.$8.9%$in$NYC)
• Greenwich$property$taxes:$$Greenwich$property$tax$rates$are$11.31$(mills).$$
Property$taxes$in$Greenwich$are$some$of$the$lowest$in$the$state.
• 4,805,432$square$feet$of$Class$A&B$office$space.
• Average$rent$(Class$A)$is$$66.73
• Over$6,000$diverse$businesses;$including$one$of$the$worlds$largest$
concentration$of$hedge$funds,$earning$Greenwich$the$nickname$“hedge$
fund$capital$of$the$world”.