Glossary
Definition
Assets Under Management (AUM)
Total market value of assets managed by a fund or institution.
Assets Under Management (AUM) refers to the total market value of all investments managed by a financial institution, fund, or individual on behalf of clients. It is the primary metric for sizing investment managers. A hedge fund with $50B AUM is generally considered a large fund; most manage $1B–$10B.
Frequently Asked Questions
Does higher AUM mean higher returns?
Not necessarily. Very large funds can struggle to deploy capital efficiently, which can limit returns. Many smaller, more nimble funds have outperformed larger peers.