Hedge fund assets hit $1.7 trillion

The asset management arm of JPMorgan Chase & Co. held the top spot in a ranking of assets managed by hedge funds, with $48.1 billion as of July 1. The bi-annual survey of the largest hedge fund firms estimated that total assets managed by the hedge fund industry reached $1.7 trillion, according to London-based HedgeFund Intelligence Ltd. The survey by Absolute Return magazine, a unit of HedgeFund Intelligence Ltd., gathers data from 268 U.S. hedge fund firms, each of which manage more than $1 billion. While New York-based JPMorgan maintained its market share lead with a 7.6% increase in assets since January, the gap is closing. Westport, Conn.-based Bridgeport Associates Inc. gained 20.8% to $43.5 million under management. The top five firms in the survey each had more than $33 billion under management. Of the top 10 firms, Renaissance Technologies LLC in New York experienced the biggest six-month decline by losing 14.7%, to $29 billion. San Francisco-based Farallon Capital Management LLC manages $33 billion after a six-month decline in assets of 8.3%. Harbinger Capital Partners, based in Birmingham, Ala., joined the top 10 for the first time, thanks to a 33.9% gain in assets, to $24 billion. The top 10 firms control nearly $337 billion in combined assets. This compares to $320 billion in January and $309 billion in July 2007.