Best convertible arbitrage fund and joint best multi-strategy fund: Highbridge Capital Management
Named after a neighbourhood in the Bronx, New York, Highbridge Capital Management was set up in 1992 by Glenn Dubin and Henry Swieca as a convertible arbitrage hedge fund. It was always on the cards that Highbridge would become a successful multi-strategy fund. Before founding it, the two partners ran Dubin & Swieca Asset Management, an asset management company specializing in alternative investment strategies, which is recognized as being one of the pioneers in advocating and employing multi-manager hedge fund portfolios.
In 15 years, Highbridge has ballooned to become a multi-strategy hedge fund with $37 billion in assets under management and nearly 300 staff in New York, Boston, London, Hong Kong and Tokyo. As well as its multi-strategy fund, Highbridge is known for the continued outperformance of its convertible arbitrage and statistical arbitrage funds. All the firm’s funds are named after landmarks in the Bronx area.
Dubin and Swieca have shown that it is not detrimental to a hedge fund business to be part-owned by a large investment bank. In 2004, JPMorgan Chase took a stake. Indeed, the recent surge in assets speaks highly of the credibility of the firm.