We hear a lot about top executives at big Wall Street banks quitting to set up their own hedge funds. It's a better arrangement for many of them, but the fact remains that the largest hedge funds are run by the biggest banks. A new survey by Alpha magazine puts JPMorgan and Goldman Sachs No. 1 and No. 2 in the top spots of a list of biggest hedge fund managers in 2006. JPMorgan vaulted to the top by a dint of its purchase of Highbridge Capital Management. Citigroup also made a move, leaping to No. 13 from No. 45. Bridgewater Associates and DE Shaw came in at the third and fourth slots. While Morgan Stanley ranks outside of the top 50, that could change soon given its acquisition binge. Now, you can argue that the top banks are pouring in at a market top. We'll just have to wait and see how all this pans out.

For more:
- here's the Financial News Online article