VANGUARD ETF funds are the most popular hedge funds among young investors in the US, and the fund rose $2bn in the first quarter of this year as it raised $1.5bn for the children’s fund.
The VANG fund was founded in 2009 by the hedge fund group Cerberus Capital Management with $1bn of private money and $100m of public money.
The fund was the only one to reach its full valuation, with the fund raising $1,200m in its first two quarters.
“Vanguard’s VANG funds have grown to be one of the top hedge funds in the world and have become the most trusted hedge fund portfolio,” said David Rolf, senior analyst at UBS Investment Bank.
The first quarter was the fund’s most successful quarter in over three years, with an increase of $1m in assets, Rolf added.
In the first half of the year, the VANG portfolio saw $6bn in investments, which rose to $7.5b by the end of the quarter.
“We expect that the growth in the Vang portfolio will continue over the coming years,” said Charles Roussos, head of the UBS investment bank’s Global Growth Fund, adding that it has a high valuation.
The firm’s portfolio had an annualized return of 18.6% in the second quarter, which was the best performance among its peers.
Roussouss added that Vanguard’s Vango funds are diversified, with more than 60% of their assets in emerging markets and 30% in emerging-market emerging-markets funds.
