Industry Statistics and Trends
Market size and recent performance (2015-2030)
Industry revenue has grown at a CAGR of 3.2 % over the past five years, to reach an estimated $126.9bn in 2025.
Trends and Insights
Economic and interest rate volatility impact investment strategies
- The industry has navigated significant volatility throughout financial markets over the past years. Financial markets have encountered economic supply chain issues at the onset of the period, fluctuating interest rates, significant swings in equity valuations, escalating geopolitical risks and trade tensions. Despite these factors, investor uncertainty steadily declined, prompting increased demand for hedge fund services as clients sought sophisticated strategies to manage risk and capitalize on market opportunities.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2025-2030)
Market size is projected to grow over the next five years.
Trends and Insights
AI and quantitative strategies will escalate amid data-driven competition
- Algorithmic trading and automated execution will become increasingly popular amid the growing data-driven competition. Hedge funds use AI-powered algorithms for high-frequency and automated trading based on real-time market data. AI and data analytics tools will enable hedge funds to execute trades faster, capturing fleeting market opportunities. Firms will increasingly invest in AI infrastructure and skilled employees to navigate the increased competition.
Biggest companies in the Hedge Funds in the US
| Company | Market Share (%)
2025 | Revenue
2025 | Profit
2025 | Profit Margin (%)
2025 |
|---|
There are no companies that hold a market share exceeding 5% in the Hedge Funds in the US industry.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Equity focus, Fixed income focus and Emerging markets. Equity focus is the largest segment of the Hedge Funds in the US.
Trends and Insights
Equity-focused investments are popular with hedge funds due to attractive returns
- This product segment generates revenue from fees generated from the performance of equity-focused strategies: equity long-only, equity long bias, equity market neutral and equity long/short. As equity values rise, hedge funds generate greater revenue from trading fees.
- More insights available in the full report
Table of Contents
About this industry
Industry definition
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.
What's included in this industry?
Products and services covered in the Hedge Funds industry in the United States include Offering equity long bias, equity long-only, equity long/short and equity market neutral funds, Offering fixed income funds, Offering emerging market funds, Offering event-driven funds, Offering multi-strategy funds, Offering macro funds, Offering distressed securities funds and Offered closed-end, dividend capture, mutual, algorithmic and tail risk funds .Companies
Companies covered in the Hedge Funds industry in the United States include .Purchase this report to view all major companies in this industry.
Related Terms
Related terms covered in the Hedge Funds industry in the United States include assets under management (aum), 2.0 and 20.0 and distressed debt.Industry Code
NAICS 525910 - Hedge Funds in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Diversification of investment boosts industry revenue. As hedge fund managers continue to diversify their holdings, the industry develops better resilience against economic a...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2015-2024) and forecast (2025-2030)
- Employees, including historical (2015-2024) and forecast (2025-2030)
- Businesses, including historical (2015-2024) and forecast (2025-2030)
- Profit, including historical (2015-2025)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Consistent returns on investment encourage capital allocation toward equity focus strategies. The steady growth of the stock market and strong performance of equities followi...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2025
- Product innovation level
Charts
- Products & services segmentation in 2025
- Major market segmentation in 2025
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Areas with high concentrations of financial institutions boost industry presence. Regions that house significant financial titans and have a large corporate presence will att...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2025
Tables
- Number and share of establishments in each state in 2025
- Number and share of revenue each state accounts for in 2025
- Number and share of wages each state accounts for in 2025
- Number and share of employees in each state in 2025
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Establishing favorable fee structure enhances internal competition. Hedge funds that implement a favorable fee structure that maximizes consumers' capital will be able to gai...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2020-2025
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
There are no companies that hold a market share exceeding 5% in the Hedge Funds in the US industry.
Analyst insights
No company owns more than 5.0% of revenue. The industry is significantly fragmented although hedge funds generally establish near large financial centers to attract clients.
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Monitoring investor uncertainty influences rate of investment from hedge funds. As investors become more uncertain of the state of the economy, there will be lower investment...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2015-2030)
- Assistance historical data and forecast (2015-2030)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Industry profitability has lagged due to the downward pressure on industry fee structures. In addition, the high interest rate environment has resulted in an outflow of capit...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
- Investment vs. share of economy
Data tables
- Industry Multiples (2018-2023)
- Industry Tax Structure (2018-2023)
- Income Statement (2018-2023)
- Balance Sheet (2018-2023)
- Liquidity Ratios (2018-2023)
- Coverage Ratios (2018-2023)
- Leverage Ratios (2018-2023)
- Operating Ratios (2018-2023)
- Cash Flow & Debt Service Ratios (2015-2030)
- Revenue per Employee (2015-2030)
- Revenue per Enterprise (2015-2030)
- Employees per Establishment (2015-2030)
- Employees per Enterprise (2015-2030)
- Average Wage (2015-2030)
- Wages/Revenue (2015-2030)
- Establishments per Enterprise (2015-2030)
- IVA/Revenue (2015-2030)
- Imports/Demand (2015-2030)
- Exports/Revenue (2015-2030)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2015-2030)
- IVA (2015-2030)
- Establishments (2015-2030)
- Enterprises (2015-2030)
- Employment (2015-2030)
- Exports (2015-2030)
- Imports (2015-2030)
- Wages (2015-2030)
Top Questions Answered
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Hedge Funds industry in the United States in 2025?
The market size of the Hedge Funds industry in the United States is $126.9bn in 2025.
How many businesses are there in the Hedge Funds industry in the United States in 2025?
There are 3,820 businesses in the Hedge Funds industry in the United States, which has grown at a CAGR of 1.8 % between 2020 and 2025.
How may import tariffs affect the Hedge Funds industry in the United States?
The Hedge Funds industry in the United States is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Hedge Funds industry in the United States?
The Hedge Funds industry in the United States is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Hedge Funds industry in the United States grown or declined over the past 5 years?
The market size of the Hedge Funds industry in the United States has been growing at a CAGR of 3.2 % between 2020 and 2025.
What is the forecast growth of the Hedge Funds industry in the United States over the next 5 years?
Over the next five years, the Hedge Funds industry in the United States is expected to grow.
What does the Hedge Funds industry in the United States include?
Offering equity long bias, equity long-only, equity long/short and equity market neutral funds and Offering fixed income funds are part of the Hedge Funds industry in the United States.
How competitive is the Hedge Funds industry in the United States?
The level of competition is high and increasing in the Hedge Funds industry in the United States.
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
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