Some hedge funds see assets shrivel in 1st half

BOSTON (Reuters) - Some of the world's biggest hedge funds suffered a dramatic drop in assets in the first half of 2008 as financial markets tumbled and many investors asked for their money back, according to a survey released on Monday.

Renaissance Technologies, which runs one of the world's most successful hedge funds that also charges some of the world's highest fees, saw assets under management shrink by 14.71 percent during the first six months of the year. The firm, run by former mathematics professor Jim Simons, managed $29 billion at the end of June, according to a survey conducted by magazine Absolute Return.

While total assets may have shrunk, its $8 billion Medallion fund soared 48 percent at the end of July, net of fees, the New York Post reported, citing people familiar with the returns.

Farallon Capital Management's assets declined 8.3 percent to $33 billion, and Goldman Sachs Asset Management saw assets fall 7.9 percent to $26.9 billion.

Overall, 35 percent of the polled hedge funds lost assets in the first six months of the year, the magazine said, adding that funds' added assets at their lowest rate in six years.

JP Morgan Asset Management kept its claim as the world's biggest hedge fund group and reported managing $48.10 billion. A year ago, the firm boasted $56.2 billion in assets on July 1, 2007, the magazine reported. It took a stake in hedge fund group Highbridge Capital Management four years ago.

Just like last year, there was a shake-up in the rankings, with Bridgewater Associates jumping into second place with $43.50 billion, overtaking D.E. Shaw, which manages $37.10 billion.

Paulson & Co, whose founder made a hugely successful bet on the housing market last year, vaulted into fourth place from eighth place with $34.94 billion.

Also, Harbinger Capital Partners was a newcomer among the industry's 10 biggest firms, reporting $24 billion managed. This marked a 33.86 percent jump in assets.

The rankings do not reflect what may have happened this summer, when some funds suffered heavy losses and many investors were said to have told managers they wanted their money back immediately.

In the first eight months of the year, hedge funds lost an average 4.8 percent, marking their worst performance in 10 years, according to data from Hedge Fund Research.

(Reporting by Svea Herbst-Bayliss; editing by Jeffrey Benkoe)