This table shows the aggregate assets and liabilities of hedge funds that file Form PF with the Securities and Exchange Commission. Unlike table B.101.f in the regular Financial Accounts publication, which reports assets and liabilities of domestic hedge funds only, this table presents data on all hedge funds that file Form PF, both domestic and foreign.

Snapshot img

Hedge Fund Market in US Size 2025-2029

The US hedge fund market size is forecast to increase by USD 738 billion at a CAGR of 8.1% between 2024 and 2029.

US Hedge Fund Market is experiencing significant growth due to increasing investor interest in alternative investment options. This trend is driven by the desire for higher returns and risk diversification, leading to a surge in assets under management. Furthermore, technological advancements are transforming the hedge fund industry, enabling companies to offer innovative solutions and improve operational efficiency. However, the market is not without challenges. Regulatory constraints continue to pose significant obstacles, with stringent regulations governing fund operations, investor protection, and transparency.
Compliance with these regulations requires substantial resources and expertise, presenting a significant challenge for hedge fund managers. Companies seeking to capitalize on market opportunities and navigate these challenges effectively must stay informed of regulatory developments and invest in robust compliance frameworks. Additionally, leveraging technology to streamline operations and enhance transparency can help hedge funds remain competitive and meet investor demands.

What will be the Size of the Hedge Fund Market in US during the forecast period?

Request Free Sample

US hedge funds market activities and evolving patterns continue to unfold, shaping the industry's landscape. Hedge funds employ various strategies, such as quantitative methods, algorithmic trading, and relative value strategies, to manage risk and generate alpha. Investor relations play a crucial role in attracting and retaining capital from high-net-worth individuals, family offices, pension funds, and institutional investors. Fund of funds and multi-strategy funds offer diversification, while big data analytics and alternative data inform investment decisions. Machine learning and artificial intelligence enhance risk management and performance measurement. Regulatory compliance and transparency are essential components of hedge fund operations, ensuring liquidity and mitigating drawdowns.
Market dynamics are influenced by various factors, including hedge fund leverage, volatility, and capacity. Hedge fund managers must navigate these complexities to deliver competitive returns, employing due diligence and effective fee structures. Hedge fund distribution channels, such as conferences and sales efforts, facilitate access to new investors. The hedge fund market is a continually evolving ecosystem, where technology, regulatory requirements, and investor expectations shape the industry's future. Hedge fund liquidation and exit strategies, performance fees, and risk appetite are critical considerations for hedge fund managers and investors alike. Ultimately, the hedge fund industry's success hinges on its ability to adapt and innovate in a rapidly changing financial landscape.

How is this Hedge Fund in US Industry segmented?

The hedge fund in US industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Offshore
  Domestic
  Fund of funds


Method

  Long and short equity
  Event driven
  Global macro
  Others


End-user

  Institutional
  Individual


Fund Structure

  Small (
  Medium (USD500M-USD2B)
  Large (>USD2B)


Investor Type

  Institutional
  High-Net-Worth Individuals


Geography

  North America

    US

By Type Insights

The offshore segment is estimated to witness significant growth during the forecast period.

The offshore segment of the hedge fund market in the US houses funds that are managed or marketed by American firms but are domiciled and operated in offshore jurisdictions. These funds, located in financial centers known for their favorable regulatory environments, tax treatment, and legal infrastructure, offer investors tax efficiency through lower or zero taxation on investment income, capital gains, and distributions. The reduced regulatory burden in offshore jurisdictions enables greater flexibility in fund operations, investment strategies, and disclosure obligations, making offshore hedge funds an appealing choice for tax-conscious investors. Portfolio construction, risk management, and hedge fund allocation strategies are crucial elements for these funds, with relative value and long-short equity strategies commonly employed.

Performance fees and management fees are the primary revenue sources for hedge fund managers, while family offices and institutional investors provide significant hedge fund capital. Regulatory compliance and due diligence are essential for investors, ensuring transparency and performance measurement. Hedge fund research, risk appetite, and investor r

As of 2020, worldwide hedge fund managers rarely used advanced data to predict investor behaviors. In fact, only 24 percent of the respondents declared to use or plan to use advanced data for this type of analysis. On the other hand, 35 percent of the respondents used or had plans to use advanced data to analyze their own internal operations.

Graph and download economic data for Hedge Funds; Real Estate; Asset, Level (BOGZ1FL625035003A) from 1945 to 2024 about Hedge Fund, real estate, assets, and USA.

In 2020, almost 50 percent of hedge fund managers who were classified as alternative data market leaders named having appropriate infrastructure as their main challenge when using alternative data. As for the rest of the market, 54 percent of alternative data users considered having a good infrastructure to be a challenge.

The US hedge fund market, a significant segment of the global alternative investment landscape, is projected to experience robust growth over the forecast period (2025-2033). With a 2025 market size estimated at $2.77 trillion (based on global data and US market dominance), a Compound Annual Growth Rate (CAGR) of 6.52% suggests a substantial expansion. This growth is driven by several factors, including increasing institutional investor participation seeking higher returns beyond traditional asset classes, the ongoing development of sophisticated investment strategies like quantitative and data-driven approaches, and a persistent need for diversification within investment portfolios. While regulatory scrutiny and economic uncertainty pose potential constraints, the adaptability of hedge fund managers and their capacity to navigate market volatility are expected to mitigate these risks. Specific strategies like equity, macro, and event-driven approaches continue to attract significant capital, alongside the rising prominence of more specialized niche strategies catering to unique market opportunities. The concentration of major players like Bridgewater Associates and Renaissance Technologies within the US contributes significantly to the market's strength and dynamism. The competitive landscape within the US hedge fund market remains fiercely contested. Established firms consistently refine their strategies and leverage technological advancements to maintain an edge, while emerging managers seek to differentiate themselves through innovative approaches. Geographic concentration, with a significant portion of the market residing in major financial hubs like New York and Connecticut, suggests opportunities for regional expansion and potential diversification into less saturated areas. The ongoing evolution of technology, particularly within artificial intelligence and machine learning, is expected to significantly impact investment strategies and operational efficiencies across the industry, driving further growth and innovation in the coming years. The overall outlook remains optimistic, with the US hedge fund market poised for considerable expansion fueled by evolving investor demands and the inherent resilience of alternative investment strategies. Recent developments include: 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.. Key drivers for this market are: Positive Trends in Equity Market is Driving the Market. Potential restraints include: Positive Trends in Equity Market is Driving the Market. Notable trends are: Rise of the Crypto Hedge Funds in United States.

In 2020, more than 50 percent of hedge fund managers classified as alternative data market leaders used seven or more alternative data sets globally, while only eight percent of the rest of the market used at least seven alternative data sets. This highlights the difference between the level of alternative data experience between the two groups. Using two or more alternative data sets was the most popular approach across both groups with 85 percent of market leaders and 77 percent of the rest of the market doing this.

In 2020, 46 percent of hedge fund managers who have used alternative data for at least five years invested more than 20 percent of their team's effort and time towards working with alternative data globally. Only eight percent of these hedge fund mangers said that their investment in alternative data was less than one percent.

Graph and download economic data for Hedge Funds; Total Financial and Nonfinancial Assets, Level (BOGZ1FL622000623A) from 1945 to 2024 about Hedge Fund, nonfinancial, financial, assets, and USA.

Pseudo database of the commercial union hedge fund database; SAS and STATA files of codes

In 2020, 38 percent of hedge fund managers who were using alternative data globally believed that alternative data will be widely adopted in the next three to five years. Only eight percent of them didn't think that it will become mainstream.

In 2020, alternative data was mainly used as a research tool to help better improve investment decisions among 69 percent of hedge fund managers, who were classified as alternative data market leaders, and 85 percent of the rest of the respondents using it for this particular purpose. Only 23 percent of the alternative data market leaders and 36 percent of the rest of the market used alternative data to help improve risk management and compliance models.

Hedge Funds Market Outlook

The global hedge funds market size was valued at approximately $3.5 trillion in 2023 and is projected to reach around $5.7 trillion by 2032, growing at a compound annual growth rate (CAGR) of 5.5% during the forecast period. Driving this growth is a combination of market volatility, investor demand for diversified investment strategies, and the evolving landscape of financial regulations.

One of the primary growth factors for the hedge funds market is the increased appetite for risk-adjusted returns. Investors, especially in the wake of economic uncertainties and market volatilities, are increasingly gravitating towards hedge funds that promise higher returns compared to traditional investment vehicles like mutual funds. This is particularly true for institutional investors, who seek diversified portfolios that can weather market downturns while capitalizing on growth opportunities.

Moreover, advancements in financial technology are significantly contributing to the expansion of the hedge fund market. The application of artificial intelligence, machine learning, and big data analytics is enabling hedge fund managers to make more informed decisions, optimize trading strategies, and enhance portfolio management. These technological innovations are not only improving the efficiency of hedge funds but also attracting a new generation of tech-savvy investors.

Additionally, the evolving regulatory landscape is shaping the growth trajectory of the hedge fund industry. While stringent regulations can pose challenges, they also bring a level of transparency and stability that can attract more conservative investors. For instance, regulations that mandate higher disclosure standards and investor protections can enhance the credibility of hedge funds, making them more appealing to a broader investor base.

In terms of regional outlook, North America continues to dominate the hedge funds market, accounting for the largest market share. The presence of a robust financial infrastructure, a high concentration of institutional investors, and a favorable regulatory environment are some of the key factors driving the market in this region. However, the Asia Pacific region is expected to witness the fastest growth during the forecast period, driven by the rising number of high net worth individuals and the increasing adoption of alternative investment strategies.

Strategy Type Analysis

The hedge funds market is segmented by strategy type into Equity Hedge, Event-Driven, Macro, Relative Value, and Others. Each of these strategies offers unique approaches to generating returns, catering to different investor risk appetites and market conditions. Equity Hedge strategies, which focus on equity markets by taking both long and short positions, dominate the market due to their capacity to mitigate risk while capturing stock market gains.

Event-Driven strategies, which capitalize on corporate events such as mergers, acquisitions, and restructurings, are increasingly gaining traction. These strategies are particularly appealing in volatile market conditions where corporate actions can lead to significant price movements. The ability to exploit inefficiencies around these events makes Event-Driven strategies a critical component of diversified hedge fund portfolios.

Macro strategies, which take positions based on economic and political views of entire countries or regions, offer a broad level of diversification. These strategies leverage global macroeconomic trends and are particularly valuable in uncertain economic climates. The growing interconnectedness of global markets has made Macro strategies increasingly relevant, as they can capture opportunities across various asset classes and geographies.

Relative Value strategies focus on identifying price discrepancies between related securities. This approach involves statistical arbitrage and market-neutral strategies that seek to profit from the relative price movements of securities rather than their absolute price movements. The rise of quantitative trading and algorithmic models has significantly bolstered the effectiveness and popularity of Relative Value strategies.

Lastly, the 'Others' category includes niche strategies such as distressed securities, multi-strategy, and fund of funds. These strategies offer specialized approaches that cater to specific market conditions or investor preferences. Multi-strategy funds, for instance, combine various hedge fund strategies within a s

Graph and download economic data for Hedge Funds; Total Net Assets; Asset, Level (BOGZ1FL622000003Q) from Q4 1945 to Q4 2024 about Hedge Fund, Net, assets, and USA.

Search LSEG's Fund Data and gain fund content, insight and analytics to benchmark fund performance, manage risk, and make investment decisions.

Lucror Analytics: Proprietary Hedge Funds Data for Credit Quality & Bond Valuation

At Lucror Analytics, we provide cutting-edge corporate data solutions tailored to fixed income professionals and organizations in the financial sector. Our datasets encompass issuer and issue-level credit quality, bond fair value metrics, and proprietary scores designed to offer nuanced, actionable insights into global bond markets that help you stay ahead of the curve. Covering over 3,300 global issuers and over 80,000 bonds, we empower our clients to make data-driven decisions with confidence and precision.

By leveraging our proprietary C-Score, V-Score , and V-Score I models, which utilize CDS and OAS data, we provide unparalleled granularity in credit analysis and valuation. Whether you are a portfolio manager, credit analyst, or institutional investor, Lucror’s data solutions deliver actionable insights to enhance strategies, identify mispricing opportunities, and assess market trends.

What Makes Lucror’s Hedge Funds Data Unique?

Proprietary Credit and Valuation Models Our proprietary C-Score, V-Score, and V-Score I are designed to provide a deeper understanding of credit quality and bond valuation:

C-Score: A composite score (0-100) reflecting an issuer's credit quality based on market pricing signals such as CDS spreads. Responsive to near-real-time market changes, the C-Score offers granular differentiation within and across credit rating categories, helping investors identify mispricing opportunities.

V-Score: Measures the deviation of an issue’s option-adjusted spread (OAS) from the market fair value, indicating whether a bond is overvalued or undervalued relative to the market.

V-Score I: Similar to the V-Score but benchmarked against industry-specific fair value OAS, offering insights into relative valuation within an industry context.

Comprehensive Global Coverage Our datasets cover over 3,300 issuers and 80,000 bonds across global markets, ensuring 90%+ overlap with prominent IG and HY benchmark indices. This extensive coverage provides valuable insights into issuers across sectors and geographies, enabling users to analyze issuer and market dynamics comprehensively.

Data Customization and Flexibility We recognize that different users have unique requirements. Lucror Analytics offers tailored datasets delivered in customizable formats, frequencies, and levels of granularity, ensuring that our data integrates seamlessly into your workflows.

High-Frequency, High-Quality Data Our C-Score, V-Score, and V-Score I models and metrics are updated daily using end-of-day (EOD) data from S&P. This ensures that users have access to current and accurate information, empowering timely and informed decision-making.

How Is the Data Sourced? Lucror Analytics employs a rigorous methodology to source, structure, transform and process data, ensuring reliability and actionable insights:

Proprietary Models: Our scores are derived from proprietary quant algorithms based on CDS spreads, OAS, and other issuer and bond data.

Global Data Partnerships: Our collaborations with S&P and other reputable data providers ensure comprehensive and accurate datasets.

Data Cleaning and Structuring: Advanced processes ensure data integrity, transforming raw inputs into actionable insights.

Primary Use Cases

1. Portfolio Construction & Rebalancing Lucror’s C-Score provides a granular view of issuer credit quality, allowing portfolio managers to evaluate risks and identify mispricing opportunities. With CDS-driven insights and daily updates, clients can incorporate near-real-time issuer/bond movements into their credit assessments.

2. Portfolio Optimization The V-Score and V-Score I allow portfolio managers to identify undervalued or overvalued bonds, supporting strategies that optimize returns relative to credit risk. By benchmarking valuations against market and industry standards, users can uncover potential mean-reversion opportunities and enhance portfolio performance.

3. Risk Management With data updated daily, Lucror’s models provide dynamic insights into market risks. Organizations can use this data to monitor shifts in credit quality, assess valuation anomalies, and adjust exposure proactively.

4. Strategic Decision-Making Our comprehensive datasets enable financial institutions to make informed strategic decisions. Whether it’s assessing the fair value of bonds, analyzing industry-specific credit spreads, or understanding broader market trends, Lucror’s data delivers the depth and accuracy required for success.

Why Choose Lucror Analytics for Hedge Funds Data? Lucror Analytics is committed to providing high-quality, actionable data solutions tailored to the evolving needs of the financial sector. Our unique combination of proprietary models, rigorous sourcing of high-quality data, and customizable delivery ensures that users have the insights they need to make smarter dec...

The hedge fund industry boomed in the 1990s, and the value of assets managed by hedge funds worldwide grew steadily until 2007. The value fell markedly the following year because of the financial crisis and did not recover until 2013. In 2024, the value of assets under management (AUM) of hedge funds reached over five trillion U.S. dollars. Which firms dominate the hedge fund industry? The biggest hedge funds in the market typically attain their size by combining exceptional results, a solid track record, and efficient risk management tactics. In 2023, Field Street Capital Management was the biggest hedge fund company, with nearly 298 billion U.S. dollars of assets under management. Some other prominent global hedge funds by AUM include Citadel, Bridgewater Associates, Mariner Investment Group LLC, etc. These industry giants often boast a diverse range of investment strategies and maintain a global presence, which allows them to capitalize on opportunities across diverse sectors and assets. Hedge Funds: What's changing? Hedge funds constantly tweak their investment strategies to keep up with market shifts. The cryptocurrency market introduces a novel asset class that is distinct from traditional financial markets. Therefore, the primary reason behind hedge funds investing in digital assets was to diversify their portfolios. The escalating interest in cryptocurrencies and blockchain technology prompted hedge funds to explore new prospects and risks associated with digital assets. In 2021, the average assets under management of crypto hedge funds more than doubled from the previous year, rising from 24 to 59 million U.S. dollars.

We propose a dynamic measure of extremal connectedness tailored to the short reporting period and unbalanced nature of hedge funds data. Using multivariate extreme value regression techniques, we estimate this measure conditional on factors reflecting the economic uncertainty and the state of the financial markets, and derive risk indicators reflecting the likelihood of extreme spillovers. Empirically, we study the dynamics of tail dependencies between hedge funds grouped per investment strategies, as well as with the banking sector. We show that during crisis periods, some pairs of strategies display an increase in their extremal connectedness, revealing a higher likelihood of simultaneous extreme losses. We also find a sizable tail dependence between hedge funds and banks, indicating that banks are more likely to suffer extreme losses when the hedge fund sector does. Our results highlight that a proactive regulatory framework should account for the dynamic nature of the tail dependence and its link with financial stress.

About this Dataset

List of Hedge funds.

Category

Lead Generation

Keywords

Hedge Fund,Hedge fund Managers,Equity Market

Row Count

10877

Price

$110.00

The global hedge fund industry, valued at $4.74 trillion in 2025, is projected to experience steady growth, driven by increasing investor interest in alternative investments and a persistent need for diversification in portfolios. A Compound Annual Growth Rate (CAGR) of 3.14% from 2025 to 2033 suggests a market size exceeding $6.5 trillion by 2033. This growth is fueled by several key factors. Firstly, the ongoing search for higher returns in a low-interest-rate environment continues to attract capital to hedge funds. Secondly, sophisticated investment strategies, such as equity, macro, event-driven, and relative value approaches, provide investors with options tailored to varying risk appetites and market conditions. Finally, the industry's geographic diversification, with significant presence in North America, Europe, and Asia-Pacific, contributes to its resilience and ongoing expansion. However, regulatory scrutiny, increasing competition, and the potential for market volatility pose challenges to sustained growth. The rise of technology and the increasing adoption of quantitative strategies are reshaping the competitive landscape, demanding ongoing adaptation and innovation from hedge fund managers. The North American region, particularly the United States, remains the dominant player in the hedge fund landscape, commanding a significant share of global assets under management. However, Asia-Pacific and Europe are experiencing notable growth, reflecting the expansion of financial markets and increasing sophistication of investors in these regions. Within the industry, multi-strategy and quantitative hedge funds are gaining prominence, showcasing the evolving preference for flexible and data-driven approaches. The continued performance of leading firms like Bridgewater Associates, Renaissance Technologies, and others will play a crucial role in shaping the industry's overall trajectory. Despite challenges, the long-term outlook for the hedge fund industry remains positive, driven by persistent investor demand for alternative investment solutions and the industry's capacity to adapt to evolving market conditions. Recent developments include: November 2022: BlackRock Alternatives (BlackRock), through a fund managed by its diversified infrastructure business, agreed to acquire Jupiter Power LLC (Jupiter). Jupiter Power is a leading United States operator and developer of stand-alone, utility-scale battery energy storage systems., August 2022: Two Sigma acquired Hivemind Software. which combined automation and distributed human intelligence to distill semi- and unstructured data sources into high-quality, machine-readable data sets.. Key drivers for this market are: Emerging Demand for Smaller or Newer Fund Managers, Recovering Performance of Existing Hedge Funds. Potential restraints include: Emerging Demand for Smaller or Newer Fund Managers, Recovering Performance of Existing Hedge Funds. Notable trends are: Investments in Digital Assets is Driving the Market.