The Busiest Port in America: Los Angeles
U.S. e-commerce grew by 32.4% in 2020—the highest annual growth rate in over two decades. Such rapid growth has resulted in many more goods being imported, leaving America’s western ports completely overwhelmed.
To help you understand the scale of this issue, we’ve visualized the number of containers waiting at sea in relation to the Port of Los Angeles’ daily processing capacity.
Stuck at Sea
As of November 2, 2021, the Port of Los Angeles reported that it had 93 vessels waiting in queue. Altogether, these ships have a maximum carrying capacity of roughly 540,000 containers (commonly measured in twenty-foot equivalent units or TEUs).
On the other side of the equation, the port processed 468,059 import containers in September (the most recent data at the time of writing). Because the port does not operate on Sundays, we can conclude that the port can load roughly 18,000 containers each day.
That capacity seems unlikely to reduce the congestion. Over a two-week timeframe in September, 407,695 containers arrived at the Port of Los Angeles, which averages to around 29,000 containers arriving each day.
|Figure||Approximate Number of Containers|
|Daily import arrivals||29,000|
|Daily import capacity||18,000|
|Daily increase in backlog||11,000|
What’s Being Done?
Solutions are needed to prevent the backlog from causing massive economic harm. In fact, analysts believe that up to $90 billion in trade could be delayed this holiday season.
In October, the Biden administration announced a deal to expand operations at the Port of Los Angeles, enabling it to run 24/7. The port also announced it will begin charging carriers for every container that sits idle over a grace period. While only temporary, this plan has drawn criticism for its unclear objective.
“The fee is on the ocean carrier, but the control over when the cargo is to be picked up sits with the cargo recipient. Having the ocean carrier pay more does nothing to encourage the cargo interest to pick up the cargo.” – World Shipping Council
Regardless of the outcome, more permanent solutions will be required as online shopping continues to gain popularity.
Ranked: The World’s 20 Biggest Hedge Funds
This annual ranking shows the world’s largest hedge funds, which collectively hold an estimated $45 trillion in assets under management.
Ranked: The World’s 20 Biggest Hedge Funds
Collectively, the world’s 15,000 hedge funds manage around $4.5 trillion in assets for their clients, weathering economic storms and world events to ensure returns.
This visual breaks down the world’s biggest hedge funds in terms of assets under management using data from Pensions & Investments.
The Top 20
The world’s biggest hedge fund by a mile is Ray Dalio’s Bridgewater Associates. At the time of this ranking, Bridgewater managed over $126 billion in assets for clients as wide ranging as university endowment funds, charities, and foreign country’s central banks.
Here’s a closer look at the ranking:
|Rank||Hedge Fund||Assets (millions USD)||Headquarters|
|#1||Bridgewater Associates||$126,400||🇺🇸 U.S.|
|#2||Man Group||$73,500||🇬🇧 UK|
|#3||Renaissance Technologies||$57,000||🇺🇸 U.S.|
|#4||Millennium Management||$54,968||🇺🇸 U.S.|
|#6||D.E. Shaw Group||$47,861||🇺🇸 U.S.|
|#7||Two Sigma Investments/Advisers||$40,969||🇺🇸 U.S.|
|#8||Davidson Kempner Capital Management||$37,450||🇺🇸 U.S.|
|#9||Farallon Capital Management||$37,400||🇺🇸 U.S.|
|#10||TCI Fund Management||$36,200||🇬🇧 UK|
|#11||Marshall Wace||$34,400||🇬🇧 UK|
|#13||AOR Capital Management||$28,200||🇺🇸 U.S.|
|#14||Anchorage Capital Group||$27,100||🇺🇸 U.S.|
|#15||Baupost Group||$26,300||🇺🇸 U.S.|
|#16||Point72 Asset Management||$26,100||🇺🇸 U.S.|
|#17||Capula Investment Management||$25,000||🇬🇧 UK|
|#18||Wellington Management||$24,968||🇺🇸 U.S.|
|#19||Brevan Howard Asset Management||$23,353||🇬🇧 UK|
This annual ranking uses AUM data from June 2022
Overall, 70% of hedge funds are headquartered in North America, with many of the world’s largest based in the United States, specifically.
The Fastest Growing Hedge Funds
Many of these large hedge funds were new to the top 20 category, having moved up dramatically from the 2021 ranking. Here’s a look at some of the AUM growth rates year-over-year.
|Rank||Hedge Fund||Growth in AUM (% Change Y-o-Y)|
|#1||Brevan Howard Asset Management||46.0%|
|#4||D.E. Shaw Group||20.4%|
|#5||Point72 Asset Management||19.7%|
|#9||AQR Capital Management||8.0%|
|#11||Capula Investment Management||4.6%|
|#13||Two Sigma Investments/Advisers||3.6%|
|#14||Davidson Kempner Capital Management||0.3%|
|#16||Farallon Capital Management||-1.8%|
|#17||TCI Fund Management||-9.5%|
|#18||Anchorage Capital Group||-12.8%|
UK-based Brevan Howard jumped from 26th to 19th, witnessing a 46% increase in their assets under management.
Hedge fund growth can be uncorrelated with the broader market, and is not necessarily an indicator of the overall economy. However, analyzing the strategies used by hedge funds and their performance can often provide useful insight for investors.
Disruptive Materials: Visualizing America’s Import Dependency
A handful of materials are increasingly crucial for the next generation of emerging technologies. But as the data shows, the U.S. is heavily reliant on foreign nations to supply these materials. (Sponsored)
America’s Import Dependency for Disruptive Materials
The U.S. is expected to see surging demand for disruptive materials, which are those deemed to have high level importance for their role in next generation technologies. But many of these disruptive materials like manganese, cobalt, and lithium are primarily imported from foreign countries.
This graphic from Global X ETFs takes a closer look at America’s reliance on net imports for these disruptive materials. Countries are ranked by how many commodities of which the U.S. is a net importer. And net importer is defined as over 50% of domestic use or consumption comes from foreign sources rather than domestic production.
Ranking Country Reliance
The U.S. imports commodities from a lot of countries, including from economic rivals. And these commodities include well known ones like nickel, zinc, and lithium, which are critical to climate-friendly technologies. However, the data reveals that there are a select number of countries where dependency is highest. Here’s a look at the top eight countries.
|Country||Number of Commodities Net Import Reliant|
|🇿🇦 South Africa||7-12|
The U.S. is most dependent on China where they are net import reliant on 19-23 different commodities, followed by Canada with 13-18. In addition, the U.S. is 100% import reliant on manganese and graphite, and 76% import reliant on cobalt.
As these materials become increasingly important for AI, robotics, drone technology, as well as for climate infrastructure like solar panels and wind turbines, nations will desire to bolster their own supply chains and be less reliant on other countries. This may also accelerate due to the pandemic highlighting the fragility behind global supply chains.
Overall, this creates an environment where the market for disruptive materials will see extended periods of high demand and rising prices, otherwise known as a demand supercycle.
Introducing the Global X Disruptive Materials ETF
The Global X Disruptive Materials ETF (Ticker: DMAT) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Disruptive Materials Index.
To learn more about gaining exposure to the rising demand for disruptive materials, click here now.
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