Top 100 Small- and Mid-Cap Hedge Funds oversee $255 billion; Icahn Associates claims the top spot

Date: Wednesday, June 26, 2013
Author: HedgeTracker

The Top 100 Small-Cap and Mid-Cap focused hedge funds oversee $255 billion in U.S. equity SMID assets, according to the most recent rankings. The Top 100 SMID Hedge Fund list is led by a number of the largest U.S. hedge funds overall, demonstrating how important smaller and lesser known companies can be for generating consistent alpha. The list is led by Icahn Associates, which allocated $12.3 billion, or nearly 73% of its equity assets, to SMID companies. Carl Icahn’s deep value and shareholder activist focused firm moved up a spot, after having held the #2 spot during last quarter’s list.

The second largest SMID hedge fund investor is John Overdeck, David Siegel and Mark Pickard’s Two Sigma Investments with $11 billion in SMID assets, while Izzy Englander’s Millennium Management ranks third with $10.5 billion.

Notably, seventeen hedge funds on the the Top 100 SMID Hedge Fund list have more than 80% of their assets invested in SMID equities. Starboard Value LP and H Partners Management are among the group of purest small- and mid-cap focused funds on the list, as both allocated 100% of their equity assets to SMID stocks. Deep value focused Starboard Value LP reported $1 billion in SMID assets and distressed focused H Partners Management reported $1.3 billion in SMID assets.

To be eligible for the top 100 SMID Hedge Fund List, a hedge fund must have more than 50% of its equity assets invested in small-cap and mid-cap companies.