<p>Hi, So I noticed Bridgewater seems to be the largest hedge fund in the world. It is often the best performing as well. however, from what I gather, funds like D.E. Shaw and Citadel seem to be much more prestigious places to work. Why is this? How is the Hedge Fund hierarchy measured?</p>
<p>Bridgewater has a very strange culture that lots of people in the hedge fund industry sneer at. Citadel and DE Shaw tend to be more quant shops, vs Bridgewater’s global macro strategy, so not necessarily a fair comparison. </p>
<p>There’s no straightforward way to measure hedge fund prestige, just as there is no measurement for PE prestige. AUM certainly plays a role, but it’s not that simple.</p>
<p>Bridgewater is extremely prestigious. Citadel has lost a lot of luster due to several recent problems Ken Griffin has had including a very unsuccessful attempt to break into I Banking. DE Shaw is a lot less successful than it used to be - performance has lagged recently and their asset base has diminished.</p>
<p>Cut your teeth at Bridgewater. But the real money is made at the smaller boutique firms who take on much more risk. Bridgewater will teach you how to manage risk. The smaller firms will teach you how to ignore it.</p>
<p>“Cut your teeth at Bridgewater. But the real money is made at the smaller boutique firms who take on much more risk. Bridgewater will teach you how to manage risk. The smaller firms will teach you how to ignore it.”</p>
<p>sosomenza may be on to something. You can make a lot of money in the right market when you don’t pay attention to risk. On the other hand, you can lose a lot for investors and damage your personal brand in the wrong market.</p>