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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?

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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 relat

A list of the top 50 Scion Asset Management holdings showing which stocks are owned by Michael Burry's hedge fund.

A list of the top 50 Renaissance Technologies holdings showing which stocks are owned by Jim Simons's hedge fund.

A list of the top 50 Pershing Square Capital Management holdings showing which stocks are owned by Bill Ackman's hedge fund.

High Frequency trading dataset copyright FirstRateData.com

What's new:

Add tick dataset :)
Add transaction fee
The model needs to learn how to avoid the cost from transaction fee, which means it should avoid buying too many times
You can add a supplimentary model for Qnet (No consideration for transaction fee), and let it consider the transaction cost
A trail model will be: Use a LSTM and input action and output the same way with loss = loss-transaction fee
The model simply decide whether to execute this order or just stay. Buy and sell are determined by Qnet
Add drop trend dataset

As of September 2023, European hedge funds had varying rates of exposure to various industries. The sector accounting for the second-highest rate of exposure for European hedge funds was consumer discretionary, displaying a rate slightly below 10 percent. European hedge funds had the lowest exposure to the real estate market, with a net exposure rate of less than one percent.

DAVP covers more than 2 million virtual portfolios created by 1.6 million users since 2013 and covers over 100 million rebalancing actions across all A-share stocks.

DAVP provides granular, record-level details for each rebalancing transaction, including the transition amount, price, and weight. Since 2022, it has also captured point-in-time (PIT) metadata on individual virtual portfolios, such as portfolio returns and popularity trends. This rich and structured dataset empowers clients to customize indicators based on their unique investment perspectives with ease.

In addition, by dividing the rebalancing records into different groups based on users’ experience, activity level, and portfolio diversity, DAVP provides easy-to-use derived insights into the investment strategy and behaviors of different groups of investors as below.

1)Popularity indicators. (e.g., number of rebalancing users/portfolios, number of rebalance, total rebalance weight/shares)

2)Sentiment indicators. (e.g., number of buy/sell users/portfolios, number of buy/sell weight/ shares, number of first buy users)

3)Market price indicators (e.g., buy/sell average/median price)

• Coverage: 5000+ A-share stocks
• History: From 2013-01-01
• Update Frequency: Daily

The total global net assets of mutual funds registered in the United States amounted to approximately 28.54 trillion U.S. dollars in 2024, compared to around 5.53 trillion U.S. dollars in 1998. Mutual funds: additional information Mutual funds are investment funds in which the capital is pooled from several investors and then used to buy securities such as stocks, bonds, or money market instruments. Although investing in mutual funds rather than direct investment in individual securities still presents a certain degree of risk, it has become more and more common practice around the world. One of the biggest advantages of this type of investment is the fact that the fund assets are managed by professionals. They aim to eliminate some risk involved in investing in individual stocks and bonds through diversification of assets. As of 2024, there were almost 7,038 mutual funds domiciled in the United States. There are four main types of mutual funds, categorized by the nature of their principal investments, namely: stock or equity funds (whether domestic or international), bond or fixed income funds, money market funds, and hybrid funds. In 2023, domestic equity funds were the most popular category in the United States, representing 46 percent of all mutual fund and ETF assets.

A list of the top 50 Point72 Asset Management holdings showing which stocks are owned by Steven Cohen's hedge fund.

As of June 17, 2024, the most shorted stock was for, the American holographic technology services provider, MicroCloud Hologram Inc., with 66.64 percent of their total float having been shorted. This is a change from mid-January 2021, when video game retailed GameStop had an incredible 121.07 percent of their available shares in a short position. In effect this means that investors had 'borrowed' more shares (with a future promise to return them) than the total number of shares available for public trading. Owing to this behavior of professional investors, retail investors enacted a campaign to drive up the stock price of Gamestop, leading to losses of billions when investors had to repurchase the stock they had borrowed. At this time, a similar – but less effective – social media campaign was also carried out for the stock price of cinema operator AMC, and the price of silver. What is short selling? Short selling is essentially where an investor bets on a share price falling by: borrowing a number of shares selling these shares while the price is still high; purchasing the same number again once the price falls; then returning the borrowed shares at a profit. Of course, a profit will only be made if the share price does fall; should the share price rise the investor will then need to purchase the shares back at a higher price, and thus incur a loss. Short selling can lead to some very large profits in a short amount of time, with Tesla stock generating over one billion dollars in short sell profits during the first week of March 2020 alone, owing to the financial crash caused by the coronavirus (COVID-19) pandemic. However, owing to the short-term, opportunistic nature of short selling, these returns look less impressive when considered as net profits from short sell positions over the full year. The risks of short selling Short selling carries greater risks than traditional investments, and for this reason financial advisors often recommend against this strategy for ‘retail’ (i.e. non-professional) investors. The reason for this is that losses from short selling are potentially uncapped, whereas losses from traditional investments are limited to the initial cost. For example, if someone purchases 100 dollars of shares, the maximum they can lose is the 100 dollars the spent on those shares. However, say someone borrows 100 dollars of shares instead, betting on the price falling. If these shares are then sold for 100 dollars but the price subsequently rises, the losses could greatly exceed the initial investment should the price rise to, say, 500 dollars. The risks of short selling can be seen by looking again at Tesla, with the company causing the greatest losses over 2020 from short selling at over 40 billion U.S. dollars.

Russia Turnover: MICEX Stock Exchange: MS: Buy & Sell: Deals for Non Residents: Investment Fund Units data was reported at 107,300.000 RUB in Jan 2019. This records a decrease from the previous number of 1,802,953.200 RUB for Dec 2018. Russia Turnover: MICEX Stock Exchange: MS: Buy & Sell: Deals for Non Residents: Investment Fund Units data is updated monthly, averaging 107,356,291.250 RUB from Aug 2015 (Median) to Jan 2019, with 42 observations. The data reached an all-time high of 2,137,080,477.500 RUB in Jan 2017 and a record low of 107,300.000 RUB in Jan 2019. Russia Turnover: MICEX Stock Exchange: MS: Buy & Sell: Deals for Non Residents: Investment Fund Units data remains active status in CEIC and is reported by Moscow Exchange. The data is categorized under Russia Premium Database’s Financial Market – Table RU.ZB006: MICEX Stock Exchange: Turnover: Buy and Sell: Deals for Non Residents.

A list of the top 50 Berkshire Hathaway holdings showing which stocks are owned by Warren Buffett's hedge fund.

Assets under management (AUM) of crypto funds have continued to grow worldwide since the beginning of 2018. Crypto funds' cumulative AUM surpassed ** billion U.S. dollars for the first time in 2020 and reached a peak of **** billion U.S. dollars at the end of the fourth quarter of 2021. Despite some of the digital investment challenges of hedge fund managers, such as lack of custody and regulation, by the end of 2021, the average AUM value of crypto hedge funds rested at approximately **** million U.S. dollars. What is a crypto fund? Crypto funds refer to a portfolio containing a range of digital assets, these portfolios are typically managed by asset managers and made accessible to investors. The number of crypto funds is primarily distributed between venture capital crypto funds that implemented methods such as pre-ICO investing and crypto hedge funds that bought and sold digital crypto assets utilizing trading strategies determined by the asset manager. Investment in crypto funds Online news and traditional media are among the primary sources that led to many investors learning and investing in crypto funds. Investors buy into these funds to receive a portion of any value created from trading activities. Venture ICO and long-only strategies provided crypto fund returns for investors in the third quarter of 2021.

Trading Volume: BK: Kuwaiti: Investment Funds: Buy data was reported at 30,204,641.000 Unit in Jun 2018. This records a decrease from the previous number of 33,717,014.000 Unit for May 2018. Trading Volume: BK: Kuwaiti: Investment Funds: Buy data is updated monthly, averaging 162,600,438.000 Unit from Oct 2008 (Median) to Jun 2018, with 117 observations. The data reached an all-time high of 916,870,596.000 Unit in Apr 2009 and a record low of 22,742,713.000 Unit in Jul 2016. Trading Volume: BK: Kuwaiti: Investment Funds: Buy data remains active status in CEIC and is reported by Boursa Kuwait. The data is categorized under Global Database’s Kuwait – Table KW.Z007: Boursa Kuwait: Trading Volume: by Nationality and Category.

A list of the top 50 Fisher Asset Management holdings showing which stocks are owned by Ken Fisher's hedge fund.

Buy-Side Data Management Market Outlook

According to our latest research, the Global Buy-Side Data Management market size was valued at $4.2 billion in 2024 and is projected to reach $12.7 billion by 2033, expanding at a robust CAGR of 13.1% during the forecast period of 2025–2033. The primary driver fueling this impressive growth trajectory is the escalating complexity of investment strategies and the corresponding surge in data volumes, compelling buy-side institutions to adopt advanced data management solutions for enhanced operational efficiency, regulatory compliance, and real-time analytics. As asset managers, hedge funds, and institutional investors increasingly rely on sophisticated data-driven decision-making, the demand for integrated, scalable, and automated buy-side data management platforms is set to rise exponentially across global markets.

Regional Outlook

North America currently dominates the Buy-Side Data Management market, accounting for the largest share of global revenues, estimated at over 40% in 2024. The region’s leadership can be attributed to its mature financial ecosystem, high digital adoption rates, and stringent regulatory frameworks that mandate robust data governance. Major financial hubs such as New York, Chicago, and Toronto serve as epicenters for buy-side institutions, fostering an environment ripe for innovation and technology adoption. Moreover, the presence of leading technology vendors and a highly skilled workforce has enabled rapid deployment of advanced software and service solutions. North American buy-side firms are also at the forefront of leveraging artificial intelligence, machine learning, and cloud-based data management, further consolidating the region’s market dominance.

Asia Pacific is positioned as the fastest-growing region in the Buy-Side Data Management market, projected to register a remarkable CAGR of 16.8% through 2033. This accelerated growth is underpinned by burgeoning financial markets in China, India, Singapore, and Australia, where increasing cross-border investments and the proliferation of asset management firms are driving demand for sophisticated data management platforms. The region is witnessing significant investments in financial technology infrastructure, supported by progressive regulatory reforms and government incentives aimed at digital transformation. Additionally, the rising adoption of cloud-based deployment models and the entry of global technology providers are catalyzing market expansion, making Asia Pacific a focal point for future growth and innovation in buy-side data management.

Emerging economies in Latin America and the Middle East & Africa are gradually embracing buy-side data management solutions, albeit at a slower pace due to infrastructural and regulatory challenges. In these regions, market growth is primarily driven by the gradual modernization of legacy systems, increased foreign investment, and the need to comply with evolving global standards. However, adoption is often hampered by limited technological expertise, budgetary constraints, and fragmented regulatory policies. Nevertheless, localized demand for risk management and compliance solutions is rising as regional asset managers and pension funds seek to enhance transparency and operational efficiency. Over the forecast period, targeted investments in digital infrastructure and capacity building are expected to unlock new opportunities for buy-side data management vendors in these emerging markets.

Report Scope

Turkey Internet Banking: FT: IN: Value: Investment Funds: Buy data was reported at 17,716.892 TRY mn in Mar 2018. This records an increase from the previous number of 16,859.445 TRY mn for Dec 2017. Turkey Internet Banking: FT: IN: Value: Investment Funds: Buy data is updated quarterly, averaging 10,437.899 TRY mn from Mar 2007 (Median) to Mar 2018, with 45 observations. The data reached an all-time high of 17,716.892 TRY mn in Mar 2018 and a record low of 6,298.981 TRY mn in Mar 2007. Turkey Internet Banking: FT: IN: Value: Investment Funds: Buy data remains active status in CEIC and is reported by The Banks Association of Turkey. The data is categorized under Global Database’s Turkey – Table TR.KA010: Internet Banking Statistics.

This dataset contains a list of financial firms registered with the Securities and Futures Commission (SFC) in Hong Kong, enriched with an automated classification of firms based on their business type. The classification was performed using a Large Language Model (LLM) to categorize firms into one of four groups:

• Buy-Side (e.g., hedge funds, asset managers)
• Sell-Side (e.g., investment banks, brokerage firms)
• Proprietary Trading (prop trading firms)
• Other (entities that do not fit neatly into the above categories)

Where available, the dataset includes both English and Chinese firm names, along with unique identifiers.

Important Notes:

• The classification is LLM-generated and, while generally reliable, may contain misclassifications, particularly for smaller, newer, lesser-known firms or firms with ambiguous names.
• This dataset can be used for exploratory analysis of Hong Kong’s financial industry, machine learning experiments, macroeconomic or regulatory studies.

Citation & Reference

This dataset was developed as part of ongoing research on the composition of Hong Kong’s financial sector. If you find it useful, please cite the following study:

Citation:

AlKetbi, Abdulla; Marti, Gautier; AlNuaimi, Khaled; Jaradat, Raed; and Henschel, Andreas. “Mapping Hong Kong’s Financial Ecosystem: A Network Analysis of the SFC’s Licensed Professionals and Institutions.” Complex Networks and Their Applications (Complex Networks 2024), 2024.

BibTeX Reference:

@inproceedings{alketbi2024mapping,
 title    = {Mapping Hong Kong's Financial Ecosystem: A Network Analysis of the SFC's Licensed Professionals and Institutions},
 author    = {AlKetbi, Abdulla and Marti, Gautier and AlNuaimi, Khaled and Jaradat, Raed and Henschel, Andreas},
 booktitle  = {Complex Networks and Their Applications (Complex Networks 2024)},
 year     = {2024},
 note     = {Accepted for presentation}
}

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Global credit derivatives (gross - gross), for multi-name, total (all currencies), total (all currencies), total (all maturities), hedge funds, All countries (total), All countries (total), below investment grade, total (all sectors), total (all methods), notional amounts - bought