Regulatory AUM vs Normal AUM

If you search up different hedge funds on WhaleWisdom, aum13f.com, docoh.com, and the official EDGAR 13F database, you sometimes get different values for the fund's AUM.

The difference lies in the fact that some sites show Regulatory AUM, while others report normal AUM. And the discrepancy can be substantial. I read somewhere, for example, that Balyasny has $127bn regulatory AUM but only $6bn normal AUM. (https://www.reuters.com/article/us-health-coronav…) (https://aum13f.com/guide/regulatory-aum-vs-aum-me…)

A google search shows that regulatory AUM is "calculated based on the advisor's gross assets under management (including securities purchased with borrowed amounts), not the net value of the accounts."

But what I couldn't find is, which AUM does a fund use to charge management and performance fees? 

I'm assuming it must be regulatory AUM, because if a fund like Balyasny only charges fees on their 6bn AUM, their 699 employees must be starving.

Hedge Fund Interview Course

  • 814 questions across 165 hedge funds. Crowdsourced from over 500,000 members.
  • 11 Detailed Sample Pitches and 10+ hours of video.
  • Trusted by over 1,000 aspiring hedge fund professionals just like you.

Comments (15)

Most Helpful
  • Investment Analyst in HF - EquityHedge
Apr 10, 2021 - 8:33pm

Thanks for your input. And the performance fee is calculated out of gross returns right?

If I identify a fund and want to determine its revenue, should I use its regulatory AUM or normal AUM to calculate the fees?

Also, not quite following your math here

  • Research Analyst in HF - Other
Apr 10, 2021 - 8:43pm

Where'd you get 2.16bn from? Assuming 8B aum, 30% gains, and a fee structure of 2 and 20, the math looks like this:

2% * 8bn = 160m

30% * 8bn = 2.4bn, of which they charge a 20% performance fee. So 2.4 * 20% = 480m.

Total = 540m.

Learn More

300+ video lessons across 6 modeling courses taught by elite practitioners at the top investment banks and private equity funds -- Excel Modeling -- Financial Statement Modeling -- M&A Modeling -- LBO Modeling -- DCF and Valuation Modeling -- ALL INCLUDED + 2 Huge Bonuses.

Learn more
  • Research Associate in HF - Event
May 2, 2021 - 11:23pm

Here's something I've always wondered. If a firm has regulatory AUM of $500M. Most of those small HFs likely run 100/50 or 120/60 exposures. Then is it a fair assumption that RegAUM * 50-66% is a good approximation for actual AUM?

Start Discussion

Total Avg Compensation

July 2021 Hedge Fund

  • Vice President (18) $520
  • Director/MD (10) $359
  • NA (4) $325
  • Portfolio Manager (7) $297
  • Manager (4) $282
  • 3rd+ Year Associate (18) $269
  • 2nd Year Associate (26) $251
  • Engineer/Quant (51) $237
  • 1st Year Associate (63) $188
  • Analysts (184) $168
  • Intern/Summer Associate (15) $125
  • Junior Trader (5) $102
  • Intern/Summer Analyst (208) $82