US Hedge Fund Market Size & Share Analysis - Industry Research Report - Growth Trends (2024)

US Hedge Fund Market Size

US Hedge Fund Market Size & Share Analysis - Industry Research Report - Growth Trends (1)

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Study Period2020-2029
Base Year For Estimation2023
Market Size (2024)USD 2.77 Trillion
Market Size (2029)USD 3.80 Trillion
CAGR (2024 - 2029)6.52 %
Market ConcentrationMedium

Major Players

US Hedge Fund Market Size & Share Analysis - Industry Research Report - Growth Trends (2)

*Disclaimer: Major Players sorted in no particular order

US Hedge Fund Market Size & Share Analysis - Industry Research Report - Growth Trends (3)

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US Hedge Fund Market Analysis

The US Hedge Fund Market size in terms of assets under management value is expected to grow from USD 2.77 trillion in 2024 to USD 3.80 trillion by 2029, at a CAGR of 6.52% during the forecast period (2024-2029).

The United States hedge fund market is one of the largest and most influential in the world. A hedge fund is a collective investment fund invested in securities or another type of investment to get returns. Hedge funds can use complex trading, portfolio construction, and risk management techniques to improve returns. The United States accounts for three-quarters of this industry's assets under management (AuM) worldwide.

Fund managers also use AIML (artificial intelligence and machine learning) more to increase returns and improve the efficiency of their operations. Several people with strong investment backgrounds are drawn to joining "plug and play" operations because they can concentrate on producing alpha instead of managing the risk and expense of starting their hedge fund, especially with the barriers to entry at an all-time high due to evolving regulatory requirements and complex operational requirements.

US Hedge Fund Market Trends

Rise of the Crypto Hedge Funds in United States

Hedge funds are leaning more toward digital assets and the cryptocurrency sector. Hedge fund managers are analyzing crypto as a strong opportunity for growth. Their emerging interest is one of the reasons cryptocurrency values are rapidly growing. Globally, there are over three hundred crypto hedge funds. The total AUM of US crypto hedge funds roughly doubled over the past few years.

US Hedge Fund Market Size & Share Analysis - Industry Research Report - Growth Trends (4)

Understand The Key Trends Shaping This Market

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Asia-Pacific is Expected to Hold Significant Market Share

The emergence and popularity of digital assets have created new investment opportunities for hedge funds. Cryptocurrencies, blockchain technology, and related assets have offered the potential for high returns, diversification, and uncorrelated assets to traditional markets. The increased acceptance of digital assets by mainstream financial institutions and corporations has bolstered the interest of hedge funds. Major institutions, such as banks, asset managers, and insurance companies, have started offering or supporting cryptocurrency-related products and services. The rise in digital asset investing has necessitated the development of supporting technology and infrastructure. Hedge funds have been actively involved in developing trading platforms, custody solutions, and other infrastructure required for managing digital assets. This has created new business opportunities and revenue streams for hedge fund managers and service providers.

US Hedge Fund Market Size & Share Analysis - Industry Research Report - Growth Trends (5)

US Hedge Fund Industry Overview

The US hedge fund market is moderately fragmented. The report includes an overview of hedge fund companies operating across the US. The report includes an overview of the largest hedge funds by assets managed and major digital asset hedge funds. The US hedge fund industry presents opportunities for growth during the forecast period, which is expected to drive market competition further. Some of the prominent players include Bridgewater Associates, Renaissance Technologies LLC, AQR Capital Management, Two Sigma, and Millennium Management.

US Hedge Fund Market Leaders

  1. Bridgewater Associates

  2. Renaissance Technologies LLC

  3. AQR Capital Management

  4. Two Sigma

  5. Millennium Management

*Disclaimer: Major Players sorted in no particular order

US Hedge Fund Market Size & Share Analysis - Industry Research Report - Growth Trends (6)

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US Hedge Fund Market News

  • January 2024: The Palm Beach Hedge Fund Association (PBHFA), the premier trade association for investors and financial professionals in South Florida, and Entoro, a leading boutique finance and investment banking group, announced a strategic partnership to improve deal distribution for hedge funds.
  • October 2022: Divya Nettimi, a former Viking Global Investors portfolio manager who oversaw over USD 4 billion at the Greenwich, Connecticut-based hedge fund firm, became the first woman to launch a hedge fund that has committed more than USD 1 billion.

US Hedge Fund Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS AND DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

      1. 4.2.1 Positive Trends in Equity Market is Driving the Market

    3. 4.3 Market Restraints

      1. 4.3.1 Market Volatility can Impact Fund Performance

      2. 4.3.2 Regulatory Constraints and Compliance Requirements can Pose Challenges for Hedge Funds

    4. 4.4 Market Opportunities

      1. 4.4.1 Growing Demand for Sustainable and Impact Investing

      2. 4.4.2 Advancements in Technology and Data Analytics Present Opportunities for Hedge Funds

    5. 4.5 Porter's Five Forces Analysis

      1. 4.5.1 Bargaining Power of Buyers/Consumers

      2. 4.5.2 Bargaining Power of Suppliers

      3. 4.5.3 Threat of New Entrants

      4. 4.5.4 Threat of Substitute Products

      5. 4.5.5 Intensity of Competitive Rivalry

    6. 4.6 Insights on Technological Innovations in the Market

    7. 4.7 Impact of COVID-19 on market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Core Investment Strategies

      1. 5.1.1 Equity Strategies

      2. 5.1.2 Macro Strategies

      3. 5.1.3 Event Driven Strategies

      4. 5.1.4 Credit Strategies

      5. 5.1.5 Relative Value Strategies

      6. 5.1.6 Niche Strategies

      7. 5.1.7 Multi-Strategy

      8. 5.1.8 Managed Futures/CTA Strategies

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 Bridgewater Associates

      2. 6.1.2 Renaissance Technologies LLC

      3. 6.1.3 AQR Capital Management

      4. 6.1.4 Two Sigma

      5. 6.1.5 Millennium Management

      6. 6.1.6 Elliott Investment Management

      7. 6.1.7 BlackRock, Inc.

      8. 6.1.8 Citadel

      9. 6.1.9 Davidson Kempner Capital Management

      10. 6.1.10 D. E. Shaw & Co.*

    2. *List Not Exhaustive
  7. 7. MARKET FUTURE TRENDS

  8. 8. DISCLAIMER AND ABOUT US

US Hedge Fund Industry Segmentation

Investment funds pooled and traded reasonably liquid assets are known as hedge funds. They can employ a variety of sophisticated trading, portfolio creation, and risk management strategies, including leverage, derivatives, and short selling, to increase returns. The market's background is thoroughly examined, covering industry trends, growth factors, market shares, market size and forecast, and suppliers. The research also includes qualitative and quantitative evaluations based on an analysis of data collected from market participants and industry analysts at significant stages in the industry's value chain. The United States hedge fund market is segmented based on core investment strategies, which include equity, macro, event-driven, credit, relative value, niche, and multi-strategy, as well as managed futures/CTA strategies. The report offers market sizes and forecasts for the hedge fund market in the United States in terms of revenue (USD) for all the above segments.

By Core Investment Strategies
Equity Strategies
Macro Strategies
Event Driven Strategies
Credit Strategies
Relative Value Strategies
Niche Strategies
Multi-Strategy
Managed Futures/CTA Strategies

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US Hedge Fund Market Research FAQs

How big is the US Hedge Fund Market?

The US Hedge Fund Market size is expected to reach USD 2.77 trillion in 2024 and grow at a CAGR of 6.52% to reach USD 3.80 trillion by 2029.

What is the current US Hedge Fund Market size?

In 2024, the US Hedge Fund Market size is expected to reach USD 2.77 trillion.

Who are the key players in US Hedge Fund Market?

Bridgewater Associates, Renaissance Technologies LLC, AQR Capital Management, Two Sigma and Millennium Management are the major companies operating in the US Hedge Fund Market.

What years does this US Hedge Fund Market cover, and what was the market size in 2023?

In 2023, the US Hedge Fund Market size was estimated at USD 2.59 trillion. The report covers the US Hedge Fund Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the US Hedge Fund Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

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US Hedge Fund Industry Report

Statistics for the 2024 US Hedge Fund market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. US Hedge Fund analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Geta sample of this industry analysis as a free report PDF download.

  • US Hedge Fund Market Size
  • US Hedge Fund Market Share
  • US Hedge Fund Market Trends
  • US Hedge Fund Companies

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US Hedge Fund Market Size & Share Analysis - Industry Research Report - Growth Trends (2024)

FAQs

US Hedge Fund Market Size & Share Analysis - Industry Research Report - Growth Trends? ›

The Hedge Fund Market Size accounted for USD 4.7 Trillion in 2022 and is projected to achieve a market size of USD 6.5 Trillion by 2032 growing at a CAGR of 3.3% from 2023 to 2032.

What is the size of the hedge fund market? ›

The Hedge Fund Market Size accounted for USD 4.7 Trillion in 2022 and is projected to achieve a market size of USD 6.5 Trillion by 2032 growing at a CAGR of 3.3% from 2023 to 2032.

What are the hedge fund trends in 2024? ›

Hedge Funds (HF) are up 4.2% year-to-date as of March 2024, which compares well with diversified global allocations, including 40/60 Equity/Bond portfolios which are up around +2.2% and have higher volatility. HF performance year-to-date was led by CTAs, EM focused and L/S Equity both Directional and Neutral.

What is the average growth rate of hedge funds? ›

Hedge Funds in the US market size (2024-2029) Industry revenue has grown at a CAGR of 7.7% over the past five years, to reach an estimated $127.4bn in 2024.

Is the hedge fund industry growing? ›

The hedge fund industry has witnessed remarkable growth this century, surging from $265 billion in 2000 to surpassing $5 trillion, according to Statista.

What is the 2 20 rule for hedge funds? ›

The 2 and 20 is a hedge fund compensation structure consisting of a management fee and a performance fee. 2% represents a management fee which is applied to the total assets under management. A 20% performance fee is charged on the profits that the hedge fund generates, beyond a specified minimum threshold.

Does size matter in the hedge fund industry? ›

Abstract. We document a negative and convex relationship between hedge fund size and future risk-adjusted returns. Small hedge funds outperform large hedge funds by 3.65 percent per year after adjusting for risk.

Will hedge funds exist in 10 years? ›

Overall, the consensus is that hedge funds will continue to grow but will adapt to lower fees, greater use of technology, and increased access to retail investors.

Do hedge funds do well in a recession? ›

With the threat of recession growing, we examined hedge fund performance during recessionary periods over the last three decades, finding that they have demonstrably outperformed when stocks have declined.

How many hedge funds go bust? ›

It shows that liquidated and all defunct single-manager hedge funds account for less than a quarter and almost half of all single-manager hedge funds in the database respectively. Moreover, the increase in cumulative liquidation and attrition rates slows down significantly after funds become more than ten years old.

What is the most successful hedge fund? ›

Citadel, which ranked second in 2023, made $8.1 billion in profits after bringing in a record-breaking $16 billion in 2022. Its $74 billion in gains since inception rank it as the most successful hedge fund in history.

What hedge fund has the highest returns ever? ›

One of the most profitable hedge funds of all times, Citadel generated $16 billion in profits for its investors in 2022, and earned $65.9 billion in net gains since 1990, making it the top-earning hedge fund ever.

What is the ROI of a hedge fund? ›

The average annual return on investment for investors in a typical hedge fund is around 8 - 10 % . This can vary depending on the specific fund and market conditions , but historically , hedge funds have outperformed other types of investments such as stocks and bonds .

Why do so many hedge funds fail? ›

Some strategies, such as managed futures and short-only funds, typically have higher probabilities of failure given the risky nature of their business operations. High leverage is another factor that can lead to hedge fund failure when the market moves in an unfavorable direction.

How big is the US hedge fund market? ›

Questions Clients Ask About This Industry

The market size, measured by revenue, of the Hedge Funds industry was $120.5bn in 2023. What was the growth rate of the Hedge Funds industry in the US in 2023? The market size of the Hedge Funds industry increased 0.6% in 2023.

What is the survival rate of hedge funds? ›

Of the 10 classifications examined, funds of hedge funds have the longest median survival time, estimated at 7.5 years. A subsequent study by the SEC,14 using the Van Hedge, database also finds the median survival for hedge funds to be 5.5 years.

How much is the hedge fund industry worth? ›

NEW YORK, April 22 (Reuters) - The global hedge fund industry ended the first quarter with a record $4.3 trillion in assets, data provider HFR said on Monday. The industry added $190 billion in assets in the first quarter, the sixth consecutive quarter of growth, it said.

What percentage of the stock market is owned by hedge funds? ›

On average over the sample period, hedge funds own 7% of outstanding shares for the typical firm listed on NYSE, AMEX, or NASDAQ. However, hedge fund stock ownership varies considerably in the cross-section of stocks and over time.

What is the AUM of the hedge fund industry? ›

As of 1st Quarter 2024, total assets under management for the hedge fund industry was $5148.9 billion, and the managed futures (CTA) industry was $363.9 billion. For historical assets under management data on the hedge fund industry, and a breakdown by sector click below.

How big is the fund financing market? ›

The NAV finance market could grow to $700 billion by 2030, up from $100 billion in 2022, according to fund finance lender 17Capital.

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