US Hedge Fund Market Size
| Study Period | 2019-2028 |
| Base Year For Estimation | 2022 |
| Forecast Data Period | 2024 - 2028 |
| Historical Data Period | 2019 - 2021 |
| CAGR | > 5.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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US Hedge Fund Market Analysis
The US hedge fund market currently made USD 110 billion in sales and is expected to register a CAGR of 5% over the forecasted period.
A hedge fund is a collective investment fund that is invested in securities or another type of investment to get returns. Hedge funds are able to make use of complex trading, portfolio construction, and risk management techniques for improving returns. The United States accounts for three-quarters of the assets under management (AuM) across the world in this industry. The US has 3,405 of the 5,523 institutional investors who are active in hedge funds, and 3,319 of the 5,383 hedge fund managers who are active. Fund managers are also using AIML (artificial intelligence and machine learning) more and more to increase returns and improve the efficiency of their operations.
The impact of COVID-19 on the hedge fund industry increased spillover risk. The number of operating hedge funds grew as well. Today, there are 3,926 hedge fund businesses in the US as of 2023, an increase of 2.8% from 2022.
With the barriers to entry for starting a hedge fund at their highest levels due to increased regulatory requirements and sophisticated operational needs, many individuals with impressive investment track records are attracted to joining a 'plug and play' operation where they can focus on generating alpha rather than dealing with the expense and risk of failure associated with setting up their own operation. The pandemic drove this trend, as the remote working environment led allocators to put more money to work with managers they were familiar with rather than engaging new managers.
US Hedge Fund Market Trends
Rise of the Crypto Hedge Funds in United States
Hedge funds are leaning more toward digital assets and the cryptocurrency sector. Hedge fund managers are analyzing crypto as a strong opportunity for growth. Their emerging interest is one of the reasons cryptocurrency values are rapidly growing. Globally, there are over 300 crypto hedge funds. The total AUM of US crypto hedge funds has roughly doubled over the past 2 years. Hedge funds trading crypto currencies tracked by index provider BarclayHedge ended 2022 down almost 50% in 2023.
Various Strategies Adopted by Hedge Fund Manager Drive the Market
Hedge funds are alternative investment plans that use market opportunities to gain profit. These funds require a larger initial investment than many others because hedge funds require less regulation. Hedge funds employ various strategies to generate returns for their investors. The hedge fund industry is expected to be consolidating, and the fund managers in the United States are expected to shift their strategies to get defensive.
US Hedge Fund Industry Overview
The report includes an overview of hedge fund companies operating across the US. The report includes an overview of the largest hedge funds by assets managed and major digital asset hedge funds. The US hedge fund industry presents opportunities for growth during the forecast period, which is expected to drive market competition further.
US Hedge Fund Market Leaders
Bridgewater Associates
Renaissance Technologies LLC
AQR Capital Management
Two Sigma
Millennium Management
*Disclaimer: Major Players sorted in no particular order
US Hedge Fund Market News
- October 2022: Divya Nettimi, a former Viking Global Investors portfolio manager who oversaw more than USD 4 billion at the Greenwich, Connecticut-based hedge fund firm, became the first woman to launch a hedge fund with more than USD 1 billion of commitment.
- June 2022: Uelectronic trading giant Citadel Securities started building a “cryptocurrency trading ecosystem” with the help of high-frequency trading and market-making firm Virtu Financial.
Table of Contents
1. INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Buyers/Consumers
4.4.2 Bargaining Power of Suppliers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
4.5 Impact of COVID-19 on market
5. MARKET SEGMENTATION
5.1 By Core Strategy
5.1.1 Equity Strategies
5.1.2 Macro Strategies
5.1.3 Event Driven Strategies
5.1.4 Credit Strategies
5.1.5 Relative Value Strategies
5.1.6 Niche Strategies
5.1.7 Multi-Strategy
5.1.8 Managed Futures/CTA Strategies
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Bridgewater Associates
6.1.2 Renaissance Technologies LLC
6.1.3 AQR Capital Management
6.1.4 Two Sigma
6.1.5 Millennium Management
6.1.6 Elliott Investment Management
6.1.7 BlackRock, Inc.
6.1.8 Citadel
6.1.9 Davidson Kempner Capital Management
6.1.10 D. E. Shaw & Co.*
- *List Not Exhaustive
7. FUTURE OF THE MARKET
8. DISCLAIMER
US Hedge Fund Industry Segmentation
A hedge fund is a pooled investment fund that trades in relatively liquid assets and is able to make extensive use of more complex trading, portfolio construction, and risk management techniques in an attempt to improve performance, such as short selling, leverage, and derivatives. The US hedge fund market is segmented based on the core investment strategies (equity, macro, event-driven, credit, relative value, niche, multi-strategy, and others). The report offers market sizes and forecasts for the hedge fund market in the United States in terms of revenue (USD billion) for all the above segments.
| By Core Strategy | |
| Equity Strategies | |
| Macro Strategies | |
| Event Driven Strategies | |
| Credit Strategies | |
| Relative Value Strategies | |
| Niche Strategies | |
| Multi-Strategy | |
| Managed Futures/CTA Strategies |
Frequently Asked Questions
What is the current US Hedge Fund Market size?
The US Hedge Fund Market is projected to register a CAGR of greater than 5% during the forecast period (2023-2028).
Who are the key players in US Hedge Fund Market?
Bridgewater Associates, Renaissance Technologies LLC, AQR Capital Management, Two Sigma and Millennium Management are the major companies operating in the US Hedge Fund Market.
US Hedge Fund Industry Report
Statistics for the 2023 US Hedge Fund market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. US Hedge Fund analysis includes a market forecast outlook to for 2023 to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
