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 2023, 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.

As of 2023, hedge funds following an arbitrage strategy had the second-lowest net returns over a one-year period. This form of investment strategy seeks to benefit from mispricings of the same asset or a similar financial asset. Hedge funds generating the lowest one-year return were those that followed a quant strategy, generating net returns of 1.47 percent. Hedge funds following this strategy trade securities based on the buy/sell decisions of computer algorithms.

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.

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.

Kuwait Trading Volume: BK: Others: Investment Funds: Sell data was reported at 13,691,631.000 Unit in Jun 2018. This records an increase from the previous number of 6,251,194.000 Unit for May 2018. Kuwait Trading Volume: BK: Others: Investment Funds: Sell data is updated monthly, averaging 5,391,241.000 Unit from Oct 2008 (Median) to Jun 2018, with 117 observations. The data reached an all-time high of 59,364,135.000 Unit in Apr 2012 and a record low of 484,378.000 Unit in Mar 2012. Kuwait Trading Volume: BK: Others: Investment Funds: Sell 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.

Trading Volume: BK: Kuwaiti: Investment Funds: Sell data was reported at 108,302,488.000 Unit in Jun 2018. This records an increase from the previous number of 103,224,624.000 Unit for May 2018. Trading Volume: BK: Kuwaiti: Investment Funds: Sell data is updated monthly, averaging 173,597,351.000 Unit from Oct 2008 (Median) to Jun 2018, with 117 observations. The data reached an all-time high of 883,312,899.000 Unit in Apr 2009 and a record low of 25,976,021.000 Unit in Jun 2017. Trading Volume: BK: Kuwaiti: Investment Funds: Sell 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.

Kuwait Trading Value: BK: GCC: Investment Funds: Sell data was reported at 429,123.225 KWD in Jun 2018. This records a decrease from the previous number of 1,754,990.129 KWD for May 2018. Kuwait Trading Value: BK: GCC: Investment Funds: Sell data is updated monthly, averaging 1,925,616.527 KWD from Oct 2008 (Median) to Jun 2018, with 117 observations. The data reached an all-time high of 33,602,061.760 KWD in Jun 2009 and a record low of 318,373.945 KWD in Nov 2011. Kuwait Trading Value: BK: GCC: Investment Funds: Sell data remains active status in CEIC and is reported by Boursa Kuwait. The data is categorized under Global Database’s Kuwait – Table KW.Z005: Boursa Kuwait: Trading Value: by Nationality and Category.

Kuwait Number of Trades: BK: Others: Investment Funds: Sell data was reported at 1,422.000 Unit in Jun 2018. This records an increase from the previous number of 951.000 Unit for May 2018. Kuwait Number of Trades: BK: Others: Investment Funds: Sell data is updated monthly, averaging 233.000 Unit from Oct 2008 (Median) to Jun 2018, with 117 observations. The data reached an all-time high of 1,682.000 Unit in Nov 2017 and a record low of 21.000 Unit in Dec 2012. Kuwait Number of Trades: BK: Others: Investment Funds: Sell data remains active status in CEIC and is reported by Boursa Kuwait. The data is categorized under Global Database’s Kuwait – Table KW.Z009: Boursa Kuwait: Number of Trades: by Nationality and Category.

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.

The highest number of companies which exited their investment funds was registered in 2016, totaling 16 businesses. By contrast, the number of companies which sold their investment funds in 2020, during the coronavirus (COVID-19) pandemic, amounted to only eight.

Assets under management (AUM) of crypto funds have continued to grow worldwide since the beginning of 2018. Crypto funds' cumulative AUM surpassed 20 billion U.S. dollars for the first time in 2020 and reached a peak of 69.7 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 58.5 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.

Russia Turnover: MICEX Stock Exchange: MS: Buy & Sell: Deals for Non Residents: Legal Entities: Investment Fund Units data was reported at 0.000 RUB in Jan 2019. This records a decrease from the previous number of 1,677,310.000 RUB for Dec 2018. Russia Turnover: MICEX Stock Exchange: MS: Buy & Sell: Deals for Non Residents: Legal Entities: Investment Fund Units data is updated monthly, averaging 96,286,748.000 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 0.000 RUB in Jan 2019. Russia Turnover: MICEX Stock Exchange: MS: Buy & Sell: Deals for Non Residents: Legal Entities: 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.

In 2023, 52 percent of the households in the United States owned shares in a mutual fund. This is a significant increase on the 5.7 percent recorded in 1980, but close to 46.3 percent found in 2013.Mutual fundsA mutual fund is a variety of collective investment vehicle, managed professionally that pools money from many investors in order to purchase securities. They play an important role in household finances in the United States of today, most notably in retirement planning. It is commonly applied only to the forms of collective investment that are regulated and are sold to the public at large. The majority of mutual funds are what is known as ‘open-ended’, meaning that shares can be bought or sold at anytime. There are a number of advantages associated with mutual funds as opposed to direct investment in individual securities. The nature of the fund as a collective investment vehicle provides increased diversification and ease of comparison to investors. The fact that they are managed professionally, and that the investment is pooled, enables participation in investments that would normally only be available to larger investors. Mutual funds are also stable in price as daily liquidity ensures minimum loss of value. Despite several advantages, as with every aspect of investment some disadvantages are to be taken into account. Fees are an inevitable part of a professionally managed fund, as is the inability to customize the investment. A common complains is also that the investor has less control over timing of the recognition of their gains.

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Foreign Exchange Market Size 2025-2029

The foreign exchange market size is forecast to increase by USD 582 billion at a CAGR of 10.6% between 2024 and 2029.

The market continues to evolve, driven by several key trends and challenges. One significant trend is the increasing use of money transfer agencies, venture capital investments, and mutual funds in foreign exchange transactions. The Internet of Things (IoT) and artificial intelligence (AI) revolutionize banking and financial services, enabling real-time personal finance software and content delivery for travelers and businesses. The uncertainty of future exchange rates fuels the demand for 24x7 trading opportunities. As urbanization progresses and digitalization becomes more prevalent, the market is expected to grow, offering numerous opportunities for businesses and investors.

What will be the Size of the Foreign Exchange Market During the Forecast Period?

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The market, also known as the forex or FX market, is a decentralized global market for the trading of currencies. It facilitates the conversion of one currency into another for various reasons, including international trade, tourism, hedging, speculation, and investment. Participants in this market include financial institutions, non-financial customers, individuals, retailers, corporate institutes, and central banks. Currencies are traded 24 hours a day, five days a week, due to the presence of multiple time zones and the interbank network.
Currency swaps, interest rate differentials, monetary interventions, economic indicators, political developments, and investment flows are some of the key drivers influencing the market. International trade, balance of payments, and economic instability in various countries also significantly impact currency values. Speculation and hedging activities, particularly by corporations and financial institutions, contribute to the volatility of currency rates. The market is increasingly leveraging artificial intelligence and Internet of Things technologies to optimize trading strategies, with mutual funds utilizing these advancements to enhance portfolio performance and manage currency risk more efficiently. The forex market plays a crucial role in facilitating international business transactions and managing risks associated with currency fluctuations.

How is this Foreign Exchange Industry segmented and which is the largest segment?

The 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.TypeReporting dealersFinancial institutionsNon-financial customersTrade Finance InstrumentsCurrency swapsOutright forward and FX swapsFX optionsCounterpartyReporting DealersOther Financial InstitutionsNon-Financial CustomersGeographyNorth AmericaCanadaUSEuropeGermanyUKAPACChinaIndiaJapanSouth AmericaBrazilMiddle East and Africa

By Type Insights

The reporting dealers segment is estimated to witness significant growth during the forecast period. The market, also known as Forex or FX, is a global financial market where participants buy, sell, and exchange currencies. This market involves various market participants, including financial institutions, non-financial customers, and corporations. Currency swaps, individuals, retailers, corporates, hedge funds, wealth managers, and foreign exchange services are among the key players. The markets facilitate international trade and investment flows, with economic indicators, political developments, inflationary pressures, and interest rate differentials influencing currency values. Monetary interventions, speculation, and risk appetite are also significant factors.
Modern technology and electronic platforms have increased efficiency and accessibility, enabling 24-hour operation. Currency exchange services, monetary policies, and regulations, including those by central banks, impact the market. Economic events, financial crises, and strategic corporate activities can cause volatility. Hedging strategies, accessible platforms, and personal finance considerations are essential for individual investors, small businesses, and multinational corporations dealing with major currency pairs. Online trading platforms and trade balances are crucial for managing currency risks in an increasingly globalized business environment.

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The Reporting dealers segment was valued at USD 278.60 billion in 2019 and showed a gradual increase during the forecast period.

Currency pairs are the foundation of forex trading, with spot trading being one of the most common methods of buying and selling currencies. Forward contracts and swap deals offer traders the ability to lock in exchange rates for future transactions, managing ris

At the end of the financial year in 2023, Luxembourg was home to the highest level of net assets in Europe, totaling over five trillion euros. Ireland followed in second place, holding almost four trillion euros in combined assets from both Alternative Investment Funds (AIFs) and Undertakings for Collective Investment in Transferable Securities Directive (UCITS). Almost half of all UCITS and AIFs net assets in Europe were domiciled in Luxembourg and Ireland. Bulgaria, Croatia, and Slovenia were home to some of the lowest levels of assets, as Bulgaria held roughly 1.3 billion euros in combined AIF and UCITS assets. What are UCITS? UCITS operate under the regulatory framework of the European commissions and are similar to mutual funds. Following the unified regulatory and investor protection requirements, UCITS funds can be registered (domiciled) and sold in any EU member state. One of the primary benefits of UCITS is the ability of fund promoters to create a single financial product that can be traded across the EU. This removes the need to create multiple fund securities on a jurisdictional basis. Similarly, to a mutual fund, the net sales of UCITS are affected by various asset classes due to the diversified holdings of the security. What are AIFs? AIFs are a collective investment vehicle, aimed toward professional investors. In the EU, financial regulation was placed upon AIFs, which covered products such as hedge funds, real estate funds, and other institutional funds. This framework intended to increase single-market efficiency, and reduce risk. Unlike UCITS, AIFs domiciled in European member countries can be marketed at a national level by non-EU asset managers. While funds of non-EU managers cannot access the entire single EU market, they may play a competitive role at a national level once permission has been granted by EU members.

India FII: Reporting Date: Turnover: Sell: Mutual Funds data was reported at 572.000 INR mn in 26 Mar 2025. This records an increase from the previous number of 137.100 INR mn for 25 Mar 2025. India FII: Reporting Date: Turnover: Sell: Mutual Funds data is updated daily, averaging 65.000 INR mn from Sep 2024 (Median) to 26 Mar 2025, with 138 observations. The data reached an all-time high of 4,850.600 INR mn in 17 Feb 2025 and a record low of 0.000 INR mn in 12 Mar 2025. India FII: Reporting Date: Turnover: Sell: Mutual Funds data remains active status in CEIC and is reported by National Securities Depository Limited. The data is categorized under High Frequency Database’s Financial and Futures Market – Table IN.ZA018: Foreign Portfolio Investors (FPI) Investment.

Brazil’s National Oil Company (NOC), Petroleo Brasileiro SA (Petrobras), has announced its plan to sell its refineries in the US, Argentina and Japan. The plan is in line with the company’s 2012 2016 Business Plan wherein it has announced asset sales worth US$14.8 billion outside Brazil. The proceeds from the divestment of refineries will allow the company to fund its investment as announced for the 2012 2016 period. Furthermore, the company plans to expand its domestic refinery capacity to check its reliance on imports of refined fuel products amidst rising domestic fuel demand. Read More

As of September 10, 2024, BlackRock's iShares Core S&P 500 was the highest valued exchange-traded fund (ETF) globally, with a market capitalization of over 521 billion U.S. dollars. The market capitalization of an ETF is calculated by multiplying the number of shares issued in the fund by the share price. This ETF is also the second-largest ETF by assets under management - although, at over 1.5 trillion U.S. dollars, the Vanguard Total Stock Market Index Fund is overall the largest investment fund by AUM. However, the Vanguard fund is different because shares in the fund are sold as various different products, some of which are structured as ETFs (like the third-largest fund listed in this statistic), while others are structured as traditional mutual funds. What are ETFs? ETFs are similar to mutual funds, in that they consist of a pool of investors’ funds which are managed by an independent third party for the purpose of a common financial investment. However, ETFs differ through how shares in the fund are bought and sold through a stock exchange, rather than directly from the fund manager. This provides the advantages of generally lower prices (as the transaction costs are paid by the exchange operator rather than the fund manager), and the possibility of intraday trading (as shares in a traditional mutual fund can only be bought and sold after the close of daily trading. The total assets managed by ETFs globally is almost six times lower than that of mutual funds, although the gap in AUM between ETFs and mutual funds in the United States is much lower, at just over three times less. Who are the largest ETF providers? The largest provider of ETFs globally is Blackrock, the world’s largest asset management company. As of July 2022, the company had more than 2.1 trillion U.S. dollars of assets under management in exchange traded funds in the U.S. alone, while Blackrock’s total assets under management across all products reached almost ten trillion U.S. dollars. Rounding out the top three providers of ETFs are fellow U.S asset managers Vanguard and State Street.

As of June 19, 2024, the largest mutual fund in the world was the Vanguard Total Intl Stock Index Admiral, listed under the ticker VTSAX, which had an astonishing 1.55 trillion U.S. dollars of net assets under management (AUM). However, it should be noted that this investment fund has been divided into multiple distinct products - not all of which are sold as mutual funds. Some shares in the fund are sold as an exchange traded, meaning it could be argued that, strictly speaking, the Vanguard Total Stock Market Index Fund in its totality cannot be classed as a mutual fund. A similar situation holds for several other investment funds included in this statistic. An ETF is a basket of shares (or other financial assets) which generally tracks an underlying index. They are similar to mutual funds, with the fundamental difference that ETFs are listed on stock exchanges, with ETF shares being traded just like regular stock.