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 relat

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 **** 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 *** 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 ** to ** million U.S. dollars.

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

Are hedge funds worth your money?

Hedge funds have developed from investment funds that were designed to lower the risk of your portfolio to a multitude of different investment styles with different goals. Their heyday was probably during the 90s and early 2000s when several star hedge fund managers rose to prominence and their assets under management grew significantly. However, since then hedge funds have been under scrutiny as their investment returns have been lacking and their ability to function as a diversification to a traditional stock and bond portfolio was put into question. As hedge funds have their own set of leverage and investment rules it is no wonder they have been accused of being greedy, unsuccessful and secretive. However, with this dataset you can make your own analysis.

Content

This dataset covers monthly hedge fund returns starting from 1997. The date column refers to the last day of the month - the end date of the return period, if I understand correctly. There are 12 different hedge fund strategies covered and the return index series are formed as an aggregate of other hedge fund index providers.

The strategy explanations are in EDHEC website:

• Convertible Arbitrage - https://risk.edhec.edu/conv-arb/
• CTA Global - https://risk.edhec.edu/cta-global/
• Distressed Securities - https://risk.edhec.edu/dist-sec/
• Emerging Markets - https://risk.edhec.edu/emg-mkts/
• Equity Market Neutral - https://risk.edhec.edu/equity-market-neutral/
• Event Driven - https://risk.edhec.edu/event-driven/
• Fixed Income Arbitrage - https://risk.edhec.edu/fix-inc-arb/
• Global Macro - https://risk.edhec.edu/global-macro/
• Long/Short Equity - https://risk.edhec.edu/ls-equity/
• Merger Arbitrage - https://risk.edhec.edu/merger-arb/
• Relative Value - https://risk.edhec.edu/relative-value/
• Short Selling - https://risk.edhec.edu/short-selling/
• Funds of Funds - https://risk.edhec.edu/fof/

Acknowledgements

All credit for the maintenance and upload of the data goes to EDHEC. You should check their website for additional resources:

https://risk.edhec.edu/all-downloads-hedge-funds-indices

Inspiration

The EDHEC hedge fund data is the data used in examples/vignettes of PortfolioAnalytics - a package for optimizing, testing and analyzing portfolio returns. You should be easily able to expand the analysis from the vignettes just by using the larger dataset available here:

https://cran.r-project.org/web/packages/PortfolioAnalytics/index.html

Hedge Fund Market Outlook

According to our latest research, the global hedge fund market size reached USD 4.3 trillion in 2024, with a robust compound annual growth rate (CAGR) of 8.2% from 2025 to 2033. Propelled by increasing institutional participation and diversification strategies, the market is forecasted to attain USD 8.3 trillion by 2033. The hedge fund industry is experiencing significant growth due to evolving investment landscapes, increased demand for alternative assets, and the pursuit of higher returns in a persistently low-yield environment. As per our latest research, these factors are fundamentally reshaping the hedge fund ecosystem and driving expansion across all major regions.

Several key growth drivers are fueling the expansion of the global hedge fund market. Firstly, institutional investors such as pension funds, sovereign wealth funds, and endowments are allocating a larger share of their portfolios to hedge funds in search of alpha and risk-adjusted returns. This trend is underpinned by the ongoing need to diversify away from traditional asset classes like equities and fixed income, especially in the face of heightened market volatility and macroeconomic uncertainty. Additionally, the growing sophistication of hedge fund strategies, enabled by advancements in technology and data analytics, is attracting a broader range of investors seeking customized solutions for capital preservation and growth. The integration of artificial intelligence and machine learning into investment models is further enhancing the ability of hedge funds to generate returns in complex and dynamic markets.

Another significant growth factor is the increasing appeal of hedge funds among high net worth individuals (HNWIs) and family offices. As global wealth continues to rise, particularly in emerging markets, HNWIs are seeking access to alternative investment vehicles that offer uncorrelated returns and downside protection. Hedge funds, with their flexible mandate and diverse strategy spectrum, are well positioned to meet these evolving investor needs. Moreover, regulatory reforms in several jurisdictions have made it easier for sophisticated retail investors to participate in hedge fund offerings, further expanding the investor base. The proliferation of digital platforms and fund marketplaces has also reduced barriers to entry, enabling greater transparency, operational efficiency, and investor engagement.

The hedge fund market is also benefiting from its ability to adapt to shifting macroeconomic and geopolitical conditions. In periods of market dislocation, hedge funds have demonstrated resilience by employing strategies such as long/short equity, global macro, and event-driven approaches to capitalize on price inefficiencies and arbitrage opportunities. This agility has reinforced the perception of hedge funds as valuable portfolio diversifiers and risk mitigators. Furthermore, as environmental, social, and governance (ESG) considerations become increasingly central to investment decision-making, many hedge funds are integrating ESG factors into their strategies, appealing to a new generation of socially conscious investors and institutional allocators.

From a regional perspective, North America continues to dominate the global hedge fund market, accounting for the largest share of assets under management (AUM). However, Asia Pacific and Europe are emerging as key growth engines, supported by regulatory liberalization, rising institutional participation, and the development of sophisticated financial markets. Latin America and the Middle East & Africa are also witnessing increased activity, driven by growing demand for alternative investments and the expansion of local capital markets. These regional dynamics are contributing to a more diversified and resilient global hedge fund landscape.

Strategy Type Analysis

The hedge fund market is characterized by a diverse array of strategy types, each designed to exploit specific market inefficiencies and deliver differentiated risk-return profiles. Equity hedge strategies remain the most prevalent, accounting for a significant portion of global hedge fund assets. These funds typically take long and short positions in equities and related derivatives, aiming to generate alpha through stock selection and market timing. The appeal of equity hedge strategies lies in their flexibility to adapt to varying market conditions

Are hedge funds worth your money? Hedge funds have developed from investment funds that were designed to lower the risk of your portfolio to a multitude of different investment styles with different goals. Their heyday was probably during the 90s and early 2000s when several star hedge fund managers rose to prominence and their assets under management grew significantly. However, since then hedge funds have been under scrutiny as their investment returns have been lacking and their ability to function as a diversification to a traditional stock and bond portfolio was put into question. As hedge funds have their own set of leverage and investment rules it is no wonder they have been accused of being greedy, unsuccessful and secretive. However, with this dataset you can make your own analysis.

Content This dataset covers monthly hedge fund returns starting from 1997. The date column refers to the last day of the month - the end date of the return period, if I understand correctly. There are 12 different hedge fund strategies covered and the return index series are formed as an aggregate of other hedge fund index providers.

The strategy explanations are in EDHEC website:

Convertible Arbitrage - https://risk.edhec.edu/conv-arb/ CTA Global - https://risk.edhec.edu/cta-global/ Distressed Securities - https://risk.edhec.edu/dist-sec/ Emerging Markets - https://risk.edhec.edu/emg-mkts/ Equity Market Neutral - https://risk.edhec.edu/equity-market-neutral/ Event Driven - https://risk.edhec.edu/event-driven/ Fixed Income Arbitrage - https://risk.edhec.edu/fix-inc-arb/ Global Macro - https://risk.edhec.edu/global-macro/ Long/Short Equity - https://risk.edhec.edu/ls-equity/ Merger Arbitrage - https://risk.edhec.edu/merger-arb/ Relative Value - https://risk.edhec.edu/relative-value/ Short Selling - https://risk.edhec.edu/short-selling/ Funds of Funds - https://risk.edhec.edu/fof/ Acknowledgements All credit for the maintenance and upload of the data goes to EDHEC. You should check their website for additional resources:

https://risk.edhec.edu/all-downloads-hedge-funds-indices

Inspiration The EDHEC hedge fund data is the data used in examples/vignettes of PortfolioAnalytics - a package for optimizing, testing and analyzing portfolio returns. You should be easily able to expand the analysis from the vignettes just by using the larger dataset available here:

https://cran.r-project.org/web/packages/PortfolioAnalytics/index.html

A list of the top 50 T Rowe Price Investment Management Inc holdings showing which stocks are owned by T Rowe Price Investment Management Inc's hedge fund.

Discover the booming UK hedge fund industry: Market size, CAGR exceeding 8%, key drivers, trends, and top players. Explore regional market shares and future projections to 2033. Invest wisely with this comprehensive analysis. Recent developments include: In January 2023: Tiger Global Management fund is accelerating its transformation from a traditional stock-picking hedge find to a venture capital investment business, with startup bets now accounting for nearly 75% of the firm's assets., In January 2023: SurgoCap Partners, a new hedge fund founded by Maia Gaonkar, started trading on Tuesday with USD 1.8 billion under management, making it the largest-ever debut of a female-led hedge fund.. Notable trends are: Assets Managed in the UK by Client Type.

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.

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

I'm fascinated how banking and large hedge funds are utilizing the huge amount of data they possess to drive the stock market in either direction. Many companies do gather these data and sell them again, while they are already public information. I'm a beginner in this world and I want to make majority of the scattered data available to everyone in one place to ease process of analysis with minimal cost possible. his dataset contains the prices for stocks since establishment until November 1st, 2021. The stocks divided based on the market index (Dow Johns, Nasdaq 100, S&P 500, and Russell 3000).

Hope you find dataset is useful.

Stock Price Time Series for Sprott Inc.. Sprott Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides asset management, portfolio management, wealth management, fund management, and administrative and consulting services to its clients. It offers mutual funds, hedge funds, and offshore funds, along with managed accounts. Further, the firm also provides broker-dealer activities. Sprott Inc. was formed on February 13, 2008 and is based in Toronto, Canada.

A list of the top 50 Price Jennifer C holdings showing which stocks are owned by Price Jennifer C's hedge fund.

Context

"Greed, for lack of a better word, is good"

The stock market has always intrigued me. Numbers, Charts, High-pressure environments, thinking on your feet, Wall Street, Hedge funds all of it!

To even begin to explore stocks, one needs to have a good amount of historical data and knowledge of a lot of technical details. Now, OHLC(Open High Low Close) data is available easily on many websites nowadays. But those as features are not enough to predict the stock prices. The stock market depends upon many many factors such as previous days performance, Global financial news, Public sentiment about the company, Mergers & Acquisitions, Moving Averages, etc

Feature Extraction is a tedious job to do, more so when we are talking about stocks. I have created this Pipeline to extract many Technical Indicators as well as lagged features for training Machine Learning algorithms for forecasting Stock Prices. One can also train multiple algorithms on multiple stocks and get an evaluation instantly on how did it perform.

Please check out the app below- https://stock-prediction-dashboard.herokuapp.com/

High-quality financial data especially which requires domain knowledge & expertise in quantitative methods is difficult to get and even if available it would be very costly. This was my motivation for creating and uploading this dataset on Kaggle, so anyone can leverage these extracted features and indicators to build and train their own machine learning models and identify patterns & trends.

Content

This dataset has around 64 features which include features extracted from OHLC, other index prices such as QQQ(Nasdaq-100 ETF) & S&P 500, technical indicators such as Bollinger bands, EMA(Exponential Moving Averages), Stochastic %K oscillator, RSI, etc.

Furthermore, It has lagged features from previous day price data as we know previous day prices affect the future stock price. Then, the data has date features which specify, if it's a leap year, if its month start or end, Quarter start or end, etc.

All of these features have something to offer for forecasting. Some tell us about the trend, some give us a signal if the stock is overbought or oversold, some portrays the strength of the price trend.

I will keep on adding all of the Nasdaq-100 companies to the dataset for the past 10 years approx. So when completed, this data will contain around 100 stocks.

Acknowledgements

This dataset belongs to me. I’m sharing it here so that people can build upon it and try and create some effective methods to predict the random walk.

Inspiration

Can you predict the unpredictable? Can you predict the Stock market movement using machine learning or deep learning techniques? To be precise, Can you generate realistic buy/sell signals for the next day based on future stock price estimates using time series modeling?

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

Stock Price Time Series for FactSet Research Systems Inc. FactSet Research Systems Inc., together with its subsidiaries, operates as a financial digital platform and enterprise solutions provider for the investment community worldwide. The company provides workstations, portfolio analytics, and enterprise data solutions, as well as managed services for supporting data, performance, risk, and reporting workflows. It offers subscription-based financial data and market intelligence on securities, companies, industries, and people that enable clients to research investment ideas, as well as analyze, monitor, and manage their portfolios. The company provides its services through its configurable desktop and mobile platform, data feeds, cloud-based digital solutions, and application programming interfaces. It serves investment professionals, including institutional asset managers, bankers, wealth managers, asset owners, partners, hedge funds, corporate users, and private equity and venture capital professionals. The company was founded in 1978 and is headquartered in Norwalk, Connecticut.

In 2025, ** percent of adults in the United States invested in the stock market. This figure has remained steady over the last few years and is still below the levels before the Great Recession, when it peaked in 2007 at ** percent. What is the stock market? The stock market can be defined as a group of stock exchanges where investors can buy shares in a publicly traded company. In more recent years, it is estimated an increasing number of Americans are using neobrokers, making stock trading more accessible to investors. Other investments A significant number of people think stocks and bonds are the safest investments, while others point to real estate, gold, bonds, or a savings account. Since witnessing the significant one-day losses in the stock market during the financial crisis, many investors were turning towards these alternatives in hopes for more stability, particularly for investments with longer maturities. This could explain the decrease in this statistic since 2007. Nevertheless, some speculators enjoy chasing the short-run fluctuations, and others see value in choosing particular stocks.

A list of the top 50 Value Aligned Research Advisors LLC holdings showing which stocks are owned by Value Aligned Research Advisors LLC's hedge fund.

China Turnover: Value: Listed Investment Fund: Shanghai Stock Exchange data was reported at 29,832,975.320 RMB mn in 2024. This records an increase from the previous number of 21,746,082.740 RMB mn for 2023. China Turnover: Value: Listed Investment Fund: Shanghai Stock Exchange data is updated yearly, averaging 370,023.000 RMB mn from Dec 1994 (Median) to 2024, with 31 observations. The data reached an all-time high of 29,832,975.320 RMB mn in 2024 and a record low of 11,734.000 RMB mn in 1994. China Turnover: Value: Listed Investment Fund: Shanghai Stock Exchange data remains active status in CEIC and is reported by China Securities Regulatory Commission. The data is categorized under China Premium Database’s Financial Market – Table CN.ZA: China Securities Regulatory Commission (CSRC): Securities Investment Fund.

According to a January 2021 survey of social media users in the United States, around five in ten users of LinkedIn reported having money invested in the stock market. Reddit users were also more likely to have made stock investments in the past, as 52 percent of the respondents belonging to the Reddit's community reported having money personally or jointly in the stock market. In January 2021, Reddit users belonging to the subreddit r/wallstreetbets came together in a coordinated buying of GameStop shares in order to deliberately increase the losses of hedge funds that had expected the price would decrease.