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Global Hedge Fund Market Dynamics: Demand Drivers, Challenges, and Growth Path to 2029

9 Sep, 2025

Insight by Abdul Wasay, Chief Operating Officer at The Business Research Company

In response to fluctuating tariffs and geopolitical trade developments, the Hedge Fund Market Outlook 2025 analyses how businesses are adapting through supply chain diversification and strategic sourcing.

What Is the Forecasted Market Size and CAGR for the Hedge Fund Market?

The hedge fund market size has grown steadily in recent years. It will grow from $4971.75 billion in 2024 to $5218.12 billion in 2025 at a compound annual growth rate (CAGR) of 5.0%. The growth in the historic period can be attributed to market volatility, regulatory changes, investor sentiment, global economic conditions, performance fees and compensation.

What Is the Forecasted CAGR for the Hedge Fund Market by 2029?

The hedge fund market is projected to reach $6001.84 billion in 2029, with a compound annual growth rate (CAGR) of 3.6%.

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What Are the Market Drivers in the Hedge Fund Industry?

The key drivers in the hedge fund market are:

• Surge in demand for varied investment strategies
• Prevalence of risk management leading to investor diversification
• The need to mitigate market volatility and potential disruptions
• Pursuit of positive returns, risk management, and capital preservation by hedge funds

What Is the Segment-Wise Breakdown of the Hedge Fund Market?

The hedge fundmarket covered in this report is segmented –
1) By Type: Domestic Hedge Funds, Offshore Hedge Funds, Fund Of Funds
2) By Strategy: Long And Short Equity, Global Macro, Event Driven, Multi Strategy, Long And Short Credit, Managed Futures Or Commodity Trading Advisors (CTA), Other Strategies
3) By End User: Individual, Enterprises

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Which Emerging Trends Are Driving Growth in the Hedge Fund Sector?

The key trends in the hedge fund market are:

• Development of innovative products, particularly cheaper hedge funds, by major companies.
• Introduction of hedge funds that charge lower than the industry standard fees.
• Expansion of investor pool through more cost-effective hedge fund offers.
• Increased accessibility due to lower fee structures, rendering exposure to alternative investment opportunities for potential higher returns.

Which Companies Are Dominating the Hedge Fund Market in Terms of Revenue?

Major players in the hedge fund market are:

• AQR Capital Management
• Citadel LLC
• Millennium Management
• Man Group
• Tudor Investment Corporation
• Greenlight Capital
• Brevan Howard Asset Management
• Elliott Management Corporation
• Highbridge Capital Management
• Pershing Square Capital Management
• Marshall Wace
• BlueCrest Capital Management
• Winton Group
• DE Shaw & Co.
• Pine River Capital Management
• Lone Star Funds
• York Capital Management
• Two Sigma Investments
• Third Point LLC
• Baupost Group
• King Street Capital Management
• Caxton Associates
• Paulson & Co.
• Canyon Partners
• Och-Ziff Capital Management Group
• Coatue Management

What Are the Regions Driving Demand in the Hedge Fund Market?

North America was the largest region in the hedge fund market in 2024

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