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.

As of 2023, it was estimated that the vast majority of hedge fund assets were managed through funds following a multi-strategy or long/short equity investment approach. Hedge funds implementing an event-driven investment strategy ranked third by assets under management (AUM) having managed over 570 billion U.S. dollars in assets.

Latin America's Hedge Fund Software market will be USD 613.01 million in 2024 and is estimated to grow at a compound annual growth rate (CAGR) of 12.7% from 2024 to 2031. The market is foreseen to reach USD 172.0 million by 2031 due to the Growing interest in alternative investments and increased focus on risk management.

The US hedge fund market, a significant player in global finance, is projected to reach a substantial size, exhibiting robust growth. The market's considerable size of $1432.83 billion in 2025, coupled with a Compound Annual Growth Rate (CAGR) of 7.9%, indicates a promising trajectory for the forecast period (2025-2033). This growth is driven by several factors, including increasing institutional investor participation seeking higher returns and diversification beyond traditional asset classes. The popularity of various investment strategies, such as long and short equity, event-driven, and global macro, further fuels market expansion. The market is segmented by fund type (offshore, domestic, fund of funds), investment approach, and end-user (institutional, individual). While competitive pressures from established giants like BlackRock, Bridgewater Associates, and Renaissance Technologies exist, the market also presents opportunities for emerging managers specializing in niche strategies. Regulatory changes and overall economic conditions remain key factors influencing market performance. Despite significant growth potential, the US hedge fund market also faces certain challenges. Increased regulatory scrutiny, heightened competition, and the inherent volatility associated with hedge fund investments are all potential restraints. Furthermore, the performance of specific strategies can fluctuate depending on market conditions, impacting investor confidence and inflows. Attracting and retaining talent is another crucial area for hedge fund managers, as skilled professionals are highly sought after in this competitive field. The geographic concentration of the industry in key financial hubs like New York and Connecticut may present both advantages and disadvantages, as concentration can lead to higher competition while also offering greater access to talent and capital. The continued evolution of technology and the adoption of advanced analytical tools are likely to reshape the competitive landscape in the coming years.

The Hedge Fund Market is projected to grow at 3.6% CAGR, reaching $6019.79 Billion by 2029. Where is the industry heading next? Get the sample report now!

This statistic presents the annual returns of hedge funds in 2017, by hedge fund type. Equity focused hedge funds performed the best, with the long/short equity funds generating 13.41 percent and equity market neutral with 8.45 percent returns in that year.

Graph and download economic data for Investment Funds; Short-Term Debt Securities; Asset, Revaluation (BOGZ1FR684022405Q) from Q4 1946 to Q4 2024 about short-term, revaluation, investment, debt, securities, assets, and USA.

From 2021 through August 2023, the in-flow and out-flow of hedge funds varied. 2022, saw the largest fund outflow, with investors pulling over 100 billion U.S. dollars. Long/short equity-focused hedge funds saw the largest share of investment outflows of almost 40 billion U.S. dollars in 2022. In August 2023, however, fund outflows were reduced greatly, totaling roughly six billion U.S. dollars.

Quant Fund Market size was valued at USD 16,008.69 Billion in 2023 and is projected to reach USD 31,365.94 Billion by 2031, at a CAGR of 10.09% from 2024 to 2031.

Quant Fund Market Definition

Quant Funds, short for quantitative funds, represent a distinctive category of investment vehicles that rely on advanced mathematical models and algorithmic methodologies for decision-making. These funds operate on a systematic and rule-based approach, utilizing computer-driven algorithms to guide the entire investment process, from asset allocation to stock selection. Unlike traditional actively managed funds, quant funds minimize human intervention and emotional biases in investment decisions, placing a strong emphasis on data-driven analysis and predefined quantitative models.

In the realm of quant funds, fund managers play a pivotal role in crafting and refining the quantitative models that govern investment strategies. Their primary responsibility lies in overseeing the development of algorithms, ensuring their relevance to market conditions, and periodically refining the models to adapt to evolving financial landscapes. However, the day-to-day decision-making process is largely automated, with the algorithms executing buy or sell orders based on predetermined criteria, thereby reducing the impact of subjective judgment and emotional reactions.

Brazil Inv Fund: Net Assets: Quotas: FIC FI: Short Term data was reported at 94,967,197.542 BRL th in Dec 2015. This records a decrease from the previous number of 100,199,160.730 BRL th for Nov 2015. Brazil Inv Fund: Net Assets: Quotas: FIC FI: Short Term data is updated monthly, averaging 52,316,072.950 BRL th from Mar 2005 (Median) to Dec 2015, with 129 observations. The data reached an all-time high of 117,965,149.984 BRL th in Apr 2015 and a record low of 16,323,080.312 BRL th in Dec 2005. Brazil Inv Fund: Net Assets: Quotas: FIC FI: Short Term data remains active status in CEIC and is reported by Securities and Exchange Commission of Brazil. The data is categorized under Global Database’s Brazil – Table BR.ZC007: Investment Fund: Net Assets Value (Old).

Graph and download economic data for Investment Funds; Short-Term Debt Securities; Asset, Transactions (BOGZ1FU684022405Q) from Q4 1946 to Q4 2024 about short-term, transactions, investment, debt, securities, assets, and USA.

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.

This statistic presents the performance spread of different hedge funds as well as fund performance in top and bottom-deciles worldwide in 2017. In that year, the top ten percent of long/short equity funds generated a return rate of 21.9 percent, while the bottom ten percent lost 17.1 percent of their investments. This amounts to a 38.9 percentage point spread.

Australia Liabilities: Stock: Non Money Market Financial Investment Funds: Short Term Loans & Placements: Other Depository Corporations data was reported at 0.000 AUD mn in Dec 2017. This stayed constant from the previous number of 0.000 AUD mn for Sep 2017. Australia Liabilities: Stock: Non Money Market Financial Investment Funds: Short Term Loans & Placements: Other Depository Corporations data is updated quarterly, averaging 0.000 AUD mn from Jun 1988 (Median) to Dec 2017, with 119 observations. The data reached an all-time high of 0.000 AUD mn in Dec 2017 and a record low of 0.000 AUD mn in Dec 2017. Australia Liabilities: Stock: Non Money Market Financial Investment Funds: Short Term Loans & Placements: Other Depository Corporations data remains active status in CEIC and is reported by Australian Bureau of Statistics. The data is categorized under Global Database’s Australia – Table AU.AB030: SNA08: SESCA08: Funds by Sector: Financial Corporations: Non Money Market Financial Investment Funds: Stock.

Cayman Islands KY: Portfolio Investment Assets: Debt Securities: Short or Negative Positions data was reported at -481.193 USD bn in 2023. This records an increase from the previous number of -536.572 USD bn for 2022. Cayman Islands KY: Portfolio Investment Assets: Debt Securities: Short or Negative Positions data is updated yearly, averaging -398.356 USD bn from Dec 2015 (Median) to 2023, with 9 observations. The data reached an all-time high of -59.765 USD bn in 2015 and a record low of -547.443 USD bn in 2021. Cayman Islands KY: Portfolio Investment Assets: Debt Securities: 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 Cayman Islands – Table KY.IMF.CPIS: BPM6: Portfolio Investment Assets: Short or Negative Positions: Annual.

Graph and download economic data for Investment Funds; Short-Term Debt Securities; Asset, Level (BOGZ1FL684022405Q) from Q4 1945 to Q3 2024 about short-term, investment, debt, securities, assets, and USA.

Graph and download economic data for Investment Funds; Short-Term Debt Securities; Asset, Transactions (BOGZ1FU684022405A) from 1946 to 2023 about short-term, transactions, investment, debt, securities, assets, and USA.

Graph and download economic data for Investment Funds; Short-Term Debt Securities; Asset, Level (BOGZ1FL684022405A) from 1945 to 2024 about short-term, investment, debt, securities, assets, and USA.