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 2024, there were roughly over 1,000 equity long/short hedge funds operating worldwide. These are hedge funds that take both long and short positions in investments. While multi-strategy hedge funds were among the top performers by net annualized return, these hedge fund types formed a lower portion of the hedge fund pool, with 180 being operational in 2024. Growth of the hedge fund industry The hedge fund industry has experienced steady growth since its boom in the 1990s. Despite facing setbacks including that of the 2008 fiscal crisis, the industry has rebounded, managing assets valued at over five trillion U.S. dollars in 2024. This continued success has been partly due to the industry's resilience and adaptability, adjusting investment strategies and portfolio holdings to changing market dynamics. How do different fund strategies impact performance? Hedge fund performance can vary considerably depending on the investment strategy adopted. Those following a multi-strategy approach achieved the highest net performance over one-, three-, and five-year periods. This strategy allocates funds across multiple sub-strategies and asset classes, resulting in highly diverse portfolios with a one-year median net performance exceeding 11 percent in 2024. Conversely, arbitrage strategies, which leverage mispricing in equity shares to generate maximum returns, delivered the second-lowest net returns over a one-year period in 2024.

The Report Covers Top Hedge Funds in UK and the Market is Segmented Based On the Core Investment Strategies (Equity, Alternative Risk Premia, Crypto, Equities Others, Event-Driven, Fixed Income Credit, Macro, Managed Futures, Multi-Strategy, Relative Value). The Report Offers Market Size and Forecasts for the UK Hedge Funds Market in Value (USD Billion) for all the Above Segments.

Hedge Fund Software Market size was valued at USD 1.69 Billion in 2024 and is projected to reach USD 4.82 Billion by 2032, growing at a CAGR of 14% during the forecast period 2026-2032.

Hedge fund software refers to specialized tools and platforms that help hedge funds manage their operations, investing strategies, and regulatory compliance more effectively. These software solutions offer a wide range of features, including as portfolio management, risk assessment, trade execution, reporting, and data analytics. They are designed to address the specific demands of hedge funds, which frequently deal with complicated investment instruments and require extensive research to maximize returns while minimizing risks.

The use of hedge fund software extends across several operational aspects of a hedge fund organization. Portfolio management software, for example, enables fund managers to monitor and evaluate their investment portfolios in real time, assisting them in rebalancing holdings and optimizing asset allocation techniques. Risk management software assists in recognizing and managing investment risks, so guaranteeing that the fund's overall risk exposure remains below acceptable levels.

The future of hedge fund software is expected to see tremendous development and innovation. As technology advances, we should expect to see more integration of AI and machine learning capabilities into software applications. These innovations will improve predictive analytics and decision-making processes, allowing hedge funds to stay ahead in a competitive market.

As of 2024, 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 600 billion U.S. dollars in assets.

A list of the top 50 Almanack Investment Partners LLC holdings showing which stocks are owned by Almanack Investment Partners LLC's hedge fund.

A list of the top 50 Capstone Investment Advisors Llc holdings showing which stocks are owned by Capstone Investment Advisors Llc's hedge fund.

Citadel Investment Group was the largest hedge fund firm in the world as of 2024. The firm managed assets worth 397 billion U.S. dollars that year. It is no surprise that the leading hedge fund firm is headquartered in the United States, as the country has the largest hedge fund industry in the world. What are hedge funds? Hedge funds are alternative investments with freer rules than for example mutual funds, as they require less regulation from the Securities and Exchange Commission (SEC). Hedge fund managers therefore use a broad range of investment strategies which are typically not available to the traditional mutual fund manager. Some typical strategies are equity strategies, credit strategies, and macro strategies, just to name a few. The development of hedge funds The hedge fund industry dates to the late 1940s, when the first hedge fund strategy was created, but boomed in the 1990s. The value of assets under management of hedge funds worldwide grew markedly since the 1990s, from around 188 billion U.S. dollars in 1996, to over 5.13 trillion U.S. dollars in 2023.

Multi-Manager Investment Market Outlook

The global multi-manager investment market size is projected to grow from USD 8.5 billion in 2023 to USD 13.6 billion by 2032, at a compound annual growth rate (CAGR) of 5.3% during the forecast period. This growth is driven by increasing investor demand for diversified portfolios and customized investment strategies.

One of the primary growth factors for the multi-manager investment market is the increasing complexity of financial markets. As markets become more intricate, individual investors and institutions are seeking specialized management services that can navigate these complexities effectively. Multi-manager investment solutions offer a diversified approach, pooling the expertise of multiple fund managers to create a cohesive investment strategy that mitigates risk and enhances returns. This diversified management is particularly attractive in volatile market conditions, providing a buffer against market downturns.

Another significant driver is the growing awareness and adoption of multi-manager strategies among retail investors. Historically, multi-manager investments were primarily the domain of institutional investors due to the higher minimum investment requirements and fees. However, with the advent of technology and online investment platforms, retail investors now have greater access to these sophisticated investment products. This democratization of investment options is expected to spur market growth as more individual investors recognize the benefits of diversified management.

The technological advancements in financial services also play a crucial role in the market's growth. The rise of fintech solutions and online platforms has made it easier to manage and distribute multi-manager investment products. These platforms offer greater transparency, ease of access, and lower costs, making them more appealing to a broader audience. Furthermore, technology enables better data analytics and performance tracking, allowing investors to make more informed decisions and enhancing the overall attractiveness of multi-manager investments.

In the realm of alternative investments, hedge funds play a pivotal role, often attracting sophisticated investors due to their potential for high returns. A crucial aspect of investing in hedge funds is understanding the Hedge Fund Management Fee, which typically includes both a management fee and a performance fee. The management fee is usually a fixed percentage of the assets under management, compensating the fund manager for their expertise and operational costs. This fee structure aligns the interests of the fund manager with those of the investors, as it incentivizes the manager to achieve superior performance. As hedge funds become more accessible to a broader range of investors, understanding these fees is essential for making informed investment decisions and evaluating the potential impact on overall returns.

Regionally, North America remains a dominant player in the multi-manager investment market due to its advanced financial infrastructure and high concentration of institutional investors. However, significant growth is expected in the Asia Pacific region, driven by increasing wealth, a growing middle class, and heightened interest in diversified investment strategies. European markets are also poised for steady growth, supported by a robust regulatory framework and high levels of financial literacy among investors.

Investment Type Analysis

The multi-manager investment market is segmented by investment type into equity, fixed income, alternative investments, and multi-asset. Equity-based multi-manager investments remain a popular choice due to their potential for higher returns. Equity investments involve buying shares of companies, and the multi-manager approach allows for diversification across different sectors and geographies. This diversification helps in spreading risk and capturing growth opportunities in various markets, making equity investments attractive to both institutional and retail investors.

Fixed income multi-manager investments offer a more conservative approach, focusing on bonds and other debt securities. These investments are preferred by risk-averse investors seeking steady income and capital preservation. The multi-manager strategy in fixed income allows for diversification across different types of bonds, including government, corporate, and municipal bonds. This helps in mana

A list of the top 50 Heritage Investment Group Inc holdings showing which stocks are owned by Heritage Investment Group Inc's hedge fund.

CN: Shares of Investment Fund: Public Offer: Open-end: Stock data was reported at 3,352.751 Unit bn in Feb 2025. This records a decrease from the previous number of 3,415.931 Unit bn for Jan 2025. CN: Shares of Investment Fund: Public Offer: Open-end: Stock data is updated monthly, averaging 1,112.093 Unit bn from Dec 2012 (Median) to Feb 2025, with 147 observations. The data reached an all-time high of 3,415.931 Unit bn in Jan 2025 and a record low of 572.608 Unit bn in Oct 2017. CN: Shares of Investment Fund: Public Offer: Open-end: Stock data remains active status in CEIC and is reported by Asset Management Association of China. The data is categorized under China Premium Database’s Financial Market – Table CN.ZAM: Fund: Shares of Investment Fund.

Graph and download economic data for Rest of the World; Equity and Investment Fund Shares Excluding Mutual Fund Shares and Money Market Fund Shares; Liability (IMA), Revaluation (BOGZ1FR263181105A) from 1946 to 2024 about revaluation, mutual funds, MMMF, IMA, equity, liabilities, and investment.

As of 2023, it was estimated that equity hedge funds managed the second-largest value of assets, having around 200 billion U.S. dollars more in assets than fixed-income/credit-based hedge funds, which ranked third overall. The total value of hedge fund assets under management (AUM) amounted to an estimated value of almost 3.5 trillion U.S. dollars overall.

Graph and download economic data for Non-MMF Investment Funds; Equity and Investment Fund Shares Excluding Mutual Fund Shares and Money Market Fund Shares; Asset, Transactions (BOGZ1FA693081105Q) from Q4 1946 to Q4 2024 about non-mmf, mutual funds, MMMF, equity, transactions, investment, assets, and USA.

From 2021 through to August 2023, the level of fund flows for global hedge funds was quite volatile. 2022, saw the largest volume of fund outflows, totaling roughly 112 billion U.S. dollars. In 2023, however, funds began to generate a lower level of outflow, with fixed income/credit hedge funds creating an inflow of roughly 1.1 billion U.S. dollars.

A list of the top 50 Soros Fund Management holdings showing which stocks are owned by George Soros's hedge fund.

Graph and download economic data for Private Depository Institutions; Equity and Investment Fund Shares Excluding Mutual Fund Shares and Money Market Fund Shares; Asset (IMA), Revaluation (BOGZ1FR703081105A) from 1946 to 2024 about revaluation, mutual funds, MMMF, IMA, equity, investment, assets, private, and USA.

Graph and download economic data for Private Depository Institutions; Equity and Investment Fund Shares Excluding Mutual Fund Shares and Money Market Fund Shares; Liability (IMA), Transactions (BOGZ1FU703181105A) from 1946 to 2024 about mutual funds, MMMF, IMA, equity, transactions, liabilities, investment, private, and USA.

A list of the top 50 Corvex Management holdings showing which stocks are owned by Keith Meister's hedge fund.

A list of the top 50 JS Capital Management holdings showing which stocks are owned by Jonathan Soros's hedge fund.