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.

As of August 2023, hedge funds in North America had the highest level of exposure to the healthcare industry. Information and technology ranked second as the net expense rate for North American hedge funds rested at roughly seven percent. The net exposure displays the difference between the long position (positions held) and the short position (positions borrowed) in a hedge fund. When calculated into a percentage this number informed investors worldwide of a fund's risk level to market fluctuations.

Hedge funds reduce net-bullish crude positions, reflecting a cooling market sentiment influenced by trade concerns, the Ukraine conflict, and potential OPEC+ output changes.

From 2022 to 2023, shifts in investment strategies occurred for many of the crypto hedge fund respondents. In 2022, over half of the survey respondents stated using either a quantitative long/short crypto strategy or a market-neutral strategy. A market-neutral strategy aims to avoid significant market losses, often by hedging long and short positions against each other, however by 2023, the level of hedge funds implementing a market-neutral strategy fell by 10 percent. Discretionary long only crypto was the second most popular strategy in 2023, with 19 percent of respondents stating they had followed this investment method.

The global hedge fund industry, currently valued at $4.74 trillion (2025), is projected to experience steady growth, with a Compound Annual Growth Rate (CAGR) of 3.14% from 2025 to 2033. This growth is driven by several factors, including increasing investor interest in alternative investment strategies seeking higher returns than traditional markets, the persistent pursuit of alpha generation in complex market environments, and the ongoing development of sophisticated quantitative trading models. The industry is segmented by investment strategy (e.g., long-short equity, global macro, quantitative), fund size, and geographic location. While regulatory scrutiny and market volatility pose challenges, the industry’s adaptability and innovation capacity are mitigating these restraints. The competitive landscape features prominent players like Bridgewater Associates, Renaissance Technologies, and BlackRock Advisors, but also numerous smaller, specialized firms. Competition is fierce, requiring continuous adaptation to market trends and investor preferences. The industry's evolution is characterized by a move toward greater transparency, improved risk management practices, and the adoption of technological advancements such as artificial intelligence and machine learning to enhance investment strategies. The forecast period (2025-2033) anticipates continued expansion, influenced by the growing global wealth and the persistent need for diversification among high-net-worth investors and institutional portfolios. While specific regional breakdowns are unavailable, it’s reasonable to assume North America and Europe will maintain significant market share, given the established presence of major hedge fund managers in those regions. However, emerging markets are also expected to contribute to overall industry growth, driven by increasing investment opportunities and financial sophistication. The industry will likely witness further consolidation as larger firms acquire smaller players, strengthening their market position. This period will also see an increased focus on Environmental, Social, and Governance (ESG) factors, as investors demand greater alignment with their values. Hedge Fund Industry: A Comprehensive Market Report (2019-2033) This insightful report provides a detailed analysis of the global hedge fund industry, encompassing market trends, leading players, and future growth projections from 2019 to 2033. The study period covers historical data (2019-2024), with the base and estimated year set at 2025, and forecasts extending to 2033. The report is invaluable for investors, industry stakeholders, and anyone seeking a comprehensive understanding of this dynamic sector. With a focus on key players like Bridgewater Associates, Renaissance Technologies, Man Group, AQR Capital Management, Two Sigma Investments, Millennium Management, Elliot Management, BlackRock Advisors, Citadel, and Davidson Kempner Capital (list not exhaustive), this report offers unparalleled insights into market dynamics and future opportunities. The total market value is predicted to reach xx Million by 2033. 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.

As of September 2023, hedge funds in the Asia-Pacific region had a net exposure rate of under nine percent to industrial-related holdings. Assets allocations relating to material holdings had an exposure rate of 1.12 percent. Net exposure rates were calculated by subtracting all short positions (positions borrowed) from all long positions (positions held). Upon this number being calculated, it was then transferred into a percentage. The percentage provided communicates the level of net exposure in a hedge fund to asset managers and investors.

Estonia EE: Portfolio Investment Assets: Short or Negative Positions: Antigua and Barbuda data was reported at 0.000 USD mn in Jun 2024. This stayed constant from the previous number of 0.000 USD mn for Jun 2023. Estonia EE: Portfolio Investment Assets: Short or Negative Positions: Antigua and Barbuda data is updated semiannually, averaging 0.000 USD mn from Jun 2014 (Median) to Jun 2024, with 20 observations. The data reached an all-time high of 0.000 USD mn in Jun 2024 and a record low of 0.000 USD mn in Jun 2024. Estonia EE: Portfolio Investment Assets: Short or Negative Positions: Antigua and Barbuda data remains active status in CEIC and is reported by International Monetary Fund. The data is categorized under Global Database’s Estonia – Table EE.IMF.CPIS: BPM6: Portfolio Investment Assets: by Country: Bi-annual.

Cayman Islands KY: Portfolio Investment Assets: Short or Negative Positions: Uruguay data was reported at -19.176 USD mn in Dec 2023. This records an increase from the previous number of -45.082 USD mn for Jun 2023. Cayman Islands KY: Portfolio Investment Assets: Short or Negative Positions: Uruguay data is updated semiannually, averaging -3.000 USD mn from Dec 2016 (Median) to Dec 2023, with 15 observations. The data reached an all-time high of 0.000 USD mn in Jun 2020 and a record low of -400.618 USD mn in Jun 2021. Cayman Islands KY: Portfolio Investment Assets: Short or Negative Positions: Uruguay data remains active status in CEIC and is reported by International Monetary Fund. The data is categorized under Global Database’s Cayman Islands – Table KY.IMF.CPIS: BPM6: Portfolio Investment Assets: by Country: Bi-annual.

Cayman Islands KY: Portfolio Investment Assets: Short or Negative Positions: French Polynesia data was reported at 0.000 USD mn in Jun 2024. This stayed constant from the previous number of 0.000 USD mn for Dec 2023. Cayman Islands KY: Portfolio Investment Assets: Short or Negative Positions: French Polynesia data is updated semiannually, averaging 0.000 USD mn from Dec 2017 (Median) to Jun 2024, with 13 observations. The data reached an all-time high of 0.000 USD mn in Jun 2024 and a record low of 0.000 USD mn in Jun 2024. Cayman Islands KY: Portfolio Investment Assets: Short or Negative Positions: French Polynesia data remains active status in CEIC and is reported by International Monetary Fund. The data is categorized under Global Database’s Cayman Islands – Table KY.IMF.CPIS: BPM6: Portfolio Investment Assets: by Country: Bi-annual.

Cyprus CY: Portfolio Investment Assets: Short or Negative Positions: Angola data was reported at 0.000 USD mn in 2023. This stayed constant from the previous number of 0.000 USD mn for 2022. Cyprus CY: Portfolio Investment Assets: Short or Negative Positions: Angola data is updated yearly, averaging 0.000 USD mn from Dec 2013 (Median) to 2023, with 11 observations. The data reached an all-time high of 0.000 USD mn in 2023 and a record low of -3.274 USD mn in 2017. Cyprus CY: Portfolio Investment Assets: Short or Negative Positions: Angola data remains active status in CEIC and is reported by International Monetary Fund. The data is categorized under Global Database’s Cyprus – Table CY.IMF.CPIS: BPM6: Portfolio Investment Assets: by Country: Annual.

Cyprus CY: Portfolio Investment Assets: Equity: Short or Negative Positions data was reported at -41.821 USD mn in Jun 2024. This records a decrease from the previous number of -36.800 USD mn for Dec 2023. Cyprus CY: Portfolio Investment Assets: Equity: Short or Negative Positions data is updated semiannually, averaging -386.244 USD mn from Jun 2013 (Median) to Jun 2024, with 23 observations. The data reached an all-time high of -28.551 USD mn in Jun 2022 and a record low of -854.626 USD mn in Jun 2015. Cyprus CY: Portfolio Investment Assets: Equity: Short or Negative Positions data remains active status in CEIC and is reported by International Monetary Fund. The data is categorized under Global Database’s Cyprus – Table CY.IMF.CPIS: BPM6: Portfolio Investment Assets: Short or Negative Positions: Bi-annual.

Cayman Islands KY: Portfolio Investment Assets: Short or Negative Positions: Montenegro data was reported at 0.000 USD mn in Dec 2023. This stayed constant from the previous number of 0.000 USD mn for Jun 2023. Cayman Islands KY: Portfolio Investment Assets: Short or Negative Positions: Montenegro data is updated semiannually, averaging 0.000 USD mn from Dec 2017 (Median) to Dec 2023, with 12 observations. The data reached an all-time high of 0.000 USD mn in Dec 2023 and a record low of 0.000 USD mn in Dec 2023. Cayman Islands KY: Portfolio Investment Assets: Short or Negative Positions: Montenegro data remains active status in CEIC and is reported by International Monetary Fund. The data is categorized under Global Database’s Cayman Islands – Table KY.IMF.CPIS: BPM6: Portfolio Investment Assets: by Country: Bi-annual.

Cayman Islands KY: Portfolio Investment Assets: Short or Negative Positions: Guiana, French data was reported at 0.000 USD mn in Jun 2024. This stayed constant from the previous number of 0.000 USD mn for Dec 2023. Cayman Islands KY: Portfolio Investment Assets: Short or Negative Positions: Guiana, French data is updated semiannually, averaging 0.000 USD mn from Dec 2017 (Median) to Jun 2024, with 13 observations. The data reached an all-time high of 0.000 USD mn in Jun 2024 and a record low of 0.000 USD mn in Jun 2024. Cayman Islands KY: Portfolio Investment Assets: Short or Negative Positions: Guiana, French data remains active status in CEIC and is reported by International Monetary Fund. The data is categorized under Global Database’s Cayman Islands – Table KY.IMF.CPIS: BPM6: Portfolio Investment Assets: by Country: Bi-annual.

AW: Portfolio Investment Assets: Equity: Short or Negative Positions data was reported at 0.000 USD mn in 2023. This stayed constant from the previous number of 0.000 USD mn for 2022. AW: Portfolio Investment Assets: Equity: Short or Negative Positions data is updated yearly, averaging -0.600 USD mn from Dec 2017 (Median) to 2023, with 7 observations. The data reached an all-time high of 0.000 USD mn in 2023 and a record low of -8.900 USD mn in 2018. AW: Portfolio Investment Assets: Equity: Short or Negative Positions data remains active status in CEIC and is reported by International Monetary Fund. The data is categorized under Global Database’s Aruba – Table AW.IMF.CPIS: BPM6: Portfolio Investment Assets: Short or Negative Positions: Annual.

Cyprus CY: Portfolio Investment Assets: Short or Negative Positions: Colombia data was reported at 0.000 USD mn in 2023. This stayed constant from the previous number of 0.000 USD mn for 2022. Cyprus CY: Portfolio Investment Assets: Short or Negative Positions: Colombia data is updated yearly, averaging 0.000 USD mn from Dec 2013 (Median) to 2023, with 11 observations. The data reached an all-time high of 0.000 USD mn in 2023 and a record low of -1.605 USD mn in 2016. Cyprus CY: Portfolio Investment Assets: Short or Negative Positions: Colombia data remains active status in CEIC and is reported by International Monetary Fund. The data is categorized under Global Database’s Cyprus – Table CY.IMF.CPIS: BPM6: Portfolio Investment Assets: by Country: Annual.

Cayman Islands KY: Portfolio Investment Assets: Short or Negative Positions: Samoa data was reported at 0.000 USD mn in Jun 2024. This stayed constant from the previous number of 0.000 USD mn for Dec 2023. Cayman Islands KY: Portfolio Investment Assets: Short or Negative Positions: Samoa data is updated semiannually, averaging 0.000 USD mn from Dec 2017 (Median) to Jun 2024, with 13 observations. The data reached an all-time high of 0.000 USD mn in Jun 2024 and a record low of 0.000 USD mn in Jun 2024. Cayman Islands KY: Portfolio Investment Assets: Short or Negative Positions: Samoa data remains active status in CEIC and is reported by International Monetary Fund. The data is categorized under Global Database’s Cayman Islands – Table KY.IMF.CPIS: BPM6: Portfolio Investment Assets: by Country: Bi-annual.

Cyprus CY: Portfolio Investment Assets: Short or Negative Positions: Zambia data was reported at 0.000 USD mn in 2023. This stayed constant from the previous number of 0.000 USD mn for 2022. Cyprus CY: Portfolio Investment Assets: Short or Negative Positions: Zambia data is updated yearly, averaging 0.000 USD mn from Dec 2013 (Median) to 2023, with 11 observations. The data reached an all-time high of 0.000 USD mn in 2023 and a record low of 0.000 USD mn in 2023. Cyprus CY: Portfolio Investment Assets: Short or Negative Positions: Zambia data remains active status in CEIC and is reported by International Monetary Fund. The data is categorized under Global Database’s Cyprus – Table CY.IMF.CPIS: BPM6: Portfolio Investment Assets: by Country: Annual.

Estonia EE: Portfolio Investment Assets: Short or Negative Positions data was reported at 0.000 USD mn in 2022. This stayed constant from the previous number of 0.000 USD mn for 2021. Estonia EE: Portfolio Investment Assets: Short or Negative Positions data is updated yearly, averaging 0.000 USD mn from Dec 2014 (Median) to 2022, with 9 observations. The data reached an all-time high of 0.000 USD mn in 2022 and a record low of -18.467 USD mn in 2018. Estonia EE: Portfolio Investment Assets: Short or Negative Positions data remains active status in CEIC and is reported by International Monetary Fund. The data is categorized under Global Database’s Estonia – Table EE.IMF.CPIS: BPM6: Portfolio Investment Assets: Short or Negative Positions: Annual.

Cayman Islands KY: Portfolio Investment Assets: Short or Negative Positions: Norfolk Island data was reported at 0.000 USD mn in Jun 2024. This stayed constant from the previous number of 0.000 USD mn for Dec 2023. Cayman Islands KY: Portfolio Investment Assets: Short or Negative Positions: Norfolk Island data is updated semiannually, averaging 0.000 USD mn from Dec 2015 (Median) to Jun 2024, with 14 observations. The data reached an all-time high of 0.000 USD mn in Jun 2024 and a record low of -1.000 USD mn in Dec 2015. Cayman Islands KY: Portfolio Investment Assets: Short or Negative Positions: Norfolk Island data remains active status in CEIC and is reported by International Monetary Fund. The data is categorized under Global Database’s Cayman Islands – Table KY.IMF.CPIS: BPM6: Portfolio Investment Assets: by Country: Bi-annual.