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.

A list of the top 50 Appaloosa holdings showing which stocks are owned by David Tepper's hedge fund.

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

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.

The United States was the leading country in terms of hedge funds assets under management in 2019. Hedge fund managers based in the United States had assets under management worth around 2.7 trillion U.S. dollars. The United Kingdom followed with the second highest assets under management, reaching 463 billion U.S. dollars. Despite a sharp contraction during the 2008 financial crisis, the total value of assets managed by hedge funds worldwide increased considerably between 1997 and 2020.

How does hedge funds work?

Hedge funds are alternative investments in which a manager employs a wide set of different strategies in the attempt to provide investors with active returns using pooled funds. The strategies available to hedge fund managers are many, ranging from riskier ones, such as merger arbitrage, to other strategies aimed at reducing market exposure, such as the market-neutral one. Hedge funds require a relatively high initial investment, and they are typically accessible only to accredited investors, such as high net worth individuals (HNIs), pension funds, insurance companies, and banks.

Crypto hedge funds

As opposed to traditional hedge funds, crypto hedge funds pool capital from investors into assets focusing entirely or partially on cryptocurrencies. Currently, the main focus areas of crypto hedge funds are Ethereum and Bitcoin, and a significant correlation was found between the number of new crypto hedge funds launched and the price of the latter. The average assets under management of crypto hedge funds increased considerably since 2019, reaching a value of almost 43 million dollars as of 2020.

As of January 2025, the Vanguard Group ranked second among global fund managers by assets under management (AUM). Rounding out the top three, Charles Schwab ranked third, managing fund assets totaling 7.32 trillion U.S. dollars. BlackRock was the largest fund manager, managing fund assets exceeding 11.48 trillion U.S. Types of investment funds. Investment funds are an important part of financial planning and investing. There are several different types of investment funds offered by fund managers, each with their own purpose and asset types. Mutual funds pool money from many investors and use that money to purchase a portfolio of stocks, bonds, and other securities. Index funds are a type of mutual fund that tracks a market index, like the S&P 500. Exchange-traded funds (ETFs) are a type of mutual fund, that is continuously traded on a stock exchange. ETFs often track market indexes or sectors. Real estate investment trusts (REITs) provide both retail and institutional investors with exposure to income-generating real estate assets such as office buildings, apartments and hotels, without having to fully invest in an individual property. The benefits of investment funds. The main advantage of investment funds is that they provide instant portfolio diversification. Rather than choosing just a few stocks or bonds, funds allow you to invest in a wide variety of different securities in one purchase. This helps reduce risk, as poor performance of one holding has less impact on the overall fund. Funds also provide access to professional management and research. Managers can take advantage of opportunities and insights that an individual investor may not have the ability to leverage. Finally, funds offer convenience. Investors won't be required to constantly rebalance portfolios. While costs and fees are a consideration, investment funds can be an excellent hands-off way for both retail and institutional investors to benefit from the market while spreading risk over many asset classes and securities.

A list of the top 50 Pershing Square Capital Management holdings showing which stocks are owned by Bill Ackman's hedge fund.

BlackRock Investment Management (UK) Limited was the largest retail and private client fund manager based in the United Kingdom, as of July 2024, by funds under management. BlackRock Investment Management (UK) Limited managed assets worth nearly 95 billion British pounds that year. The second-largest retail and private client fund manager was Legal & General Investment Management Limited, with funds under management of around 60 billion British pounds.

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.

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

A list of the top 50 EPIQ Capital Group LLC holdings showing which stocks are owned by EPIQ Capital Group LLC's hedge fund.

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

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

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

A list of the top 50 Fidelity National Financial Inc holdings showing which stocks are owned by Fidelity National Financial Inc's hedge fund.

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

A list of the top 50 Harbor Capital Advisors Inc holdings showing which stocks are owned by Harbor Capital Advisors Inc's hedge fund.

A list of the top 50 Tudor Investment holdings showing which stocks are owned by Paul Tudor Jones's hedge fund.

A list of the top 50 Discovery Capital Management Ct holdings showing which stocks are owned by Robert Citrone's hedge fund.

A list of the top 50 Smart Money Group LLC holdings showing which stocks are owned by Smart Money Group LLC's hedge fund.