Hedge Funds in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: September 2024
NAICS OD4732Revenue
$127.4bn
Past 5-Year Growth
Profit
$XX.Xbn
Employees
143k
Businesses
4,007
Wages
$XX.Xbn
Hedge Funds in the US industry analysis
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 7.7% to $127.4 billion over the past five years, including an expected incline of 5.7% in 2024. Despite economic volatility in 2020 due to the pandemic lowering interest rates, an incline in the value of stocks in 2020 positively affected many hedge funds. The S&P 500 climbed 16.3% in 2020, which helped increase AUM.
Trends and Insights
- Diversification of investment boosts industry revenue. As hedge fund managers continue to diversify their holdings, the industry develops better resilience against economic and investor uncertainty in the broader markets.
- Consistent returns on investment encourage capital allocation toward equity focus strategies. The steady growth of the stock market and strong performance of equities following the pandemic helps provide the industry with the largest revenue stream.
- Areas with high concentrations of financial institutions boost industry presence. Regions that house significant financial titans and have a large corporate presence will attract a higher level of industry growth.
- Establishing favorable fee structure enhances internal competition. Hedge funds that implement a favorable fee structure that maximizes consumers' capital will be able to gain a competitive edge against other hedge funds in the industry.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 7.7 % over the past five years, to reach an estimated $127.4bn in 2024.
Trends and Insights
Volatile economic conditions amid the pandemic was no match for hedge fund growth
- Despite the pandemic exacerbating economic volatility and forcing many core consumers to cut back on investment, hedge funds remained undeterred by these events.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Increased economic volatility poised to limit further industry growth
- As global economic conditions remain uncertain due to inflationary pressures which are expected to be persistent into the onset of the outlook period, hedge funds are poised to remain cautiously optimistic about their growth opportunities.
Biggest companies in the Hedge Funds in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Bridgewater Associates, Lp | 6,048.2 | 2,389.0 | 39.5 | |
Blackrock, Inc. | 4,742.3 | 1,873.2 | 39.5 |
To view the market share and analysis for all 2 top companies in this industry, view purchase options.
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
Consistent rate of return strengthens industry emphasis on equity focus investments
- 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.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Venture Capital & Principal Trading in the US
- Open-End Investment Funds in the US
Complementors
- Retirement & Pension Plans in the US
- Real Estate Investment Trusts in the US
International industries
- Financial Asset Investing in Australia
- Financial Asset Investing in New Zealand
- Private Equity in the UK
- Securities Investment in China
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?
Offering equity long bias, equity long-only, equity long/short and equity market neutral fundsOffering fixed income fundsOffering emerging market fundsOffering event-driven fundsOffering multi-strategy fundsOffering macro fundsOffering distressed securities fundsOffered closed-end, dividend capture, mutual, algorithmic and tail risk fundsCompanies
Bridgewater Associates, LpBlackrock, Inc.Purchase this report to view all 2 major companies in this industry.
Related Terms
ASSETS UNDER MANAGEMENT (AUM)2.0 AND 20.0DISTRESSED DEBTIndustry Code
NAICS 52599 - 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 (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- 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 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
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 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
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 2019-2024
- 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
Learn about the performance of the top companies in the industry.
Analyst insights
One company owns more than a 5.0% share of the market. The consistent growth in diversified investment helps Bridgewater Associates secure a steady market share to remain com...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Bridgewater Associates, Lp's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Blackrock, Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Bridgewater Associates, Lp, and factors influencing its performance in the industry
- Description and key data for Blackrock, Inc., and factors influencing its performance in the industry
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 (2014-2029)
- Assistance historical data and forecast (2014-2029)
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 inflationary pressures. In addition, as investor uncertainty increased investors have been wary about the economic outlook, hinde...
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 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
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 (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
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.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Hedge Funds in the US industry in United States in 2024?
The market size of the Hedge Funds in the US industry in United States is $127.4bn in 2024.
How many businesses are there in the Hedge Funds in the US industry in 2024?
There are 4,007 businesses in the Hedge Funds in the US industry in United States, which has grown at a CAGR of 3.0 % between 2019 and 2024.
Has the Hedge Funds in the US industry in United States grown or declined over the past 5 years?
The market size of the Hedge Funds in the US industry in United States has been growing at a CAGR of 7.7 % between 2019 and 2024.
What is the forecast growth of the Hedge Funds in the US industry in United States over the next 5 years?
Over the next five years, the Hedge Funds in the US industry in United States is expected to grow.
What are the biggest companies in the Hedge Funds in the US market in United States?
The biggest companies operating in the Hedge Funds market in United States are Bridgewater Associates, Lp and Blackrock, Inc.
What does the Hedge Funds in the US in 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 in the US industry.
Which companies have the highest market share in the Hedge Funds in the US in United States?
The company holding the most market share in United States is Bridgewater Associates, Lp.
How competitive is the Hedge Funds in the US industry in United States?
The level of competition is high and increasing in the Hedge Funds in the US industry in United States.
