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.
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.
The hedge fund market is projected to reach $6001.84 billion in 2029, with a compound annual growth rate (CAGR) of 3.6%.
Download the Free Sample Now: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
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
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.
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
North America was the largest region in the hedge fund market in 2024