The biggest hedge funds tightened their grip on the industry last year, with the top 100 passing the $1,000bn mark for the first time and holding more than two-thirds of all hedge fund assets, according to a new survey.

The 100 largest hedge funds increased assets 39per cent last year, Alpha magazine found, helped by investment bank-led consolidation and pension funds wanting to invest with big names. Two investment banks, JPMorgan and Goldman Sachs, topped the rankings published yesterday for the second year in a row, with $33.1bn and $32.5bn respectively, followed by Bridgewater Associates, based in Westport, Connecticut, with $30.2bn.