Allied Market Research

2024

Hedge Fund Management Market

Hedge Fund Management Market Size, Share, Competitive Landscape and Trend Analysis Report by Product, by Deployment Mode and by End User : Global Opportunity Analysis and Industry Forecast, 2023-2032

BI : Financial Services

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Author's: | Onkar Sumant
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Hedge Fund Management Market Outlook - 2030

A hedge fund is a type of alternative investment that invests in products to use strategies to earn attractive returns with minimal risk. Furthermore, the high returns attract investors for hedging funds with aggressive use of derivatives for leveraging the business. Customers can hedge their money using a variety of products such as equities, derivatives, bonds, and other securities. This market is regulated under subject to Securities and Exchange Commission (SEC) and provides better return than other investment options such as mutual funds and fixed deposits (FDs). Lock-up money with tax benefits, high rates of return, and greater investment latitude are expected to boost the hedge fund management market growth.

The global hedge fund management market is segmented on the basis of product, deployment mode, end user and region. Based on product, the market is divided into equities, derivatives, bonds, convertible securities, real estate, and others. In terms of deployment mode, the market is categorized into cloud and on-premise. On the basis of end user the hedge fund management market is divided into insurance companies, bank, and others. Geographically, the market is analyzed across several regions such as North America, Europe, Asia-Pacific, and Latin America, Middle East & Africa (LAMEA).

Key players operating in the global hedge fund management industry include Bridgewater Associates, LP., Renaissance Technologies LLC, AQR Capital Management, LLC, Elliott Investment Management L.P., Millennium Management LLC, Two Sigma Investments, Davidson Kempner Capital Management LP., Blackrock, Inc., and Citadel Enterprise Americas LLC. These companies have adopted several strategies such as product launches, partnerships, collaborations, mergers & acquisitions, and joint ventures to strengthen their foothold in the global hedge fund management market.

COVID-19 Impact Analysis

  • In the wake of the COVID-19 pandemic, global equity markets experienced unprecedented volatility. From February 1st to March 31st, the MSCI ACWI Investable Market Index (IMI) declined with nearly 21.3%. In addition, the operation of initial hedge funds has been disrupted due to increased market volatility and risk during this pandemic situation.
  • Moreover, as per Ernst & Young Global consulting firm (EY), out of 237 managers, 52% of hedge fund managers have faced significantly increased interest in actively managed strategies by following alternate hedge fund strategy during economy slowdown.

Top Impacting Factors

The trend of cash inflows in hedge fund market, improved market recovery in the security market during the economic slowdown, and satisfying customer experience are driving the growth of the market. However, higher risk and stringent regulation imposed by market regulators hamper the growth of the market. Contrarily, the use of artificial intelligence (AI) for hedging fund management and the trends of digital transformation are expected to create lucrative opportunities for the growth of the market in future.

Massive Industrial Inflows into Hedge Funds

Hedge fund has become a possible investment opportunity to invest at the lowest possible cost, with massive rally for long-term investments resulting in early recovery of better return during the economic crisis. The performance of hedge fund management has improved drastically in the last decade. For instance, multi-strategy and equity hedge funds are becoming favorable hedging strategies for generating higher returns.

Use of AI for Hedging Fund

Adopting artificial intelligence in hedging funds is a great opportunity for the market to sustain in the coming years. As per Barclays’s, British universal bank has conducted multinational bank survey and projected that nearly 56% of hedge fund respondents were in favor of making investment decisions with the assistance of AI. Approximately two-thirds of managers using artificial intelligence (AI) to generate return have experienced an optimized portfolio with nearly 20% of portfolio triple the initial value. Advanced Technologies maximizes the return with better accuracy. Therefore, rise in usage of AI in hedge funding and to provide better user experience are expected to foster the market growth in the coming years.

Key Benefits of the Report

  • This study presents analytical depiction of the hedge fund management market forecast along with the current trends and future estimations to determine the imminent investment pockets.      
  • The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the hedge fund management market share.       
  • The current market is quantitatively analyzed to highlight the hedge fund management market growth scenario.            
  • Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
  • The report provides a detailed hedge fund management market analysis depending on the present and future competitive intensity of the market.

Questions Answered in the Hedge Fund Management Market Research Report    

  • Which are the leading players active in the hedge fund management market size?
  • What are the detailed impacts of COVID-19 on the hedge fund management market trends?
  • What current trends will influence the market in the next few years?
  • What are the driving factors, restraints, and opportunities in the market?
  • What future projections would help in taking further strategic steps?

Hedge Fund Management Market Report Highlights

Aspects Details
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By Product
  • Equities
  • Derivatives
  • Bonds
  • Convertible Securities
  • Real Estate
  • Others
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By Deployment Mode
  • Cloud
  • On-premise
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By End User
  • Insurance Companies
  • Banks
  • Others
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By Region
  • North America  (U.S., Canada)
  • Europe  (France, Germany, UK, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, Rest of Asia-Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
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Key Market Players

AQR Capital Management, Blackrock, Inc., Davidson Kempner Capital Management LP., LLC, Millennium Management LLC, Citadel Enterprise Americas LLC., Elliott Investment Management L.P., Renaissance Technologies LLC, Bridgewater Associates, LP., Two Sigma Investments

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Hedge Fund Management Market

Global Opportunity Analysis and Industry Forecast, 2023-2032