Hedge Funds in the US - Industry Market Research Report

Hedging bets: Increased regulation will dampen larger industry growth

Consistent growth in assets under management (AUM) has immensely benefited the Hedge Funds industry over the past five years. Industry servicers invest capital they receive from a variety of investor types across a broad range of asset classes and investment strategies. Operators collect a fee for the amount of money they manage for these clients and a percentage of gains they are able to generate on invested assets. This business model helped industry revenue climb at a CAGR of 7.9% to $118.4 billion over the past five years, including an incline of 3.5% in 2023. Despite economic volatility in 2020 due to the COVID-19 pandemic lowering interest rates, an incline in the value of stocks in 2020 has positively affected many hedge funds. The S&P 500 spiked 16.3% in 2020, which helped increase AUM.

Companies in this industry pool investments, securities or other assets on behalf of shareholders, unit holders or other beneficiaries. This industry comprises hedge funds, but does not include mutual funds, real estate investment trusts or exchange-traded funds. Additionally, funds in this industry are considered establishments, while fund managers are considered enterprises.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry's key players and their market shares.