Report Code: A11630 | Nov 2023 | Pages: NA | ||
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Pandemic disrupted the entire world and affected many industries.
Get detailed COVID-19 impact analysis on the Hedge Fund Market
Request Now !Hedge funds are a type of mutual funds that act as a protection of uncertainty from stock market. Hedge funds are only available to high-net worth individuals or sophisticated investors but not to the general public. The term "hedge" refers to protection against risk. They are managed by fund managers on behalf of their clients. The fund manager will try to maximize the investors' return by investing in multiple assets and by applying various investing strategies. The fund managers charge a higher commission from their clients ranging from 10% to 30%. In the last 20 years, the number of hedge funds has increased dramatically. Overtime, fund managers are also increasingly adopting artificial intelligence & machine learning (AIML) techniques to improve operational efficiencies, which will further help to boost the hedge fund market growth in the future.
The hedge fund market share is segmented into type, end user, and region. Based on type, the market is classified into domestic hedge funds, offshore hedge funds, and fund of funds. Based on end user, it is bifurcated into individual and enterprises. Based on region, it is analyzed across North America (the U.S. and Canada), Europe (Germany, the UK, France, and Rest of Europe), Asia-Pacific (China, Japan, India, and Rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).
Surge in asset flow trends into hedge funds and rise in demand for hedge from smaller and new fund managers drive the growth of the market. However, high charge of investors hampers the growth of the market. Contrarily, the increased demand in usage of technology on operating of hedge funds can be seen as an opportunity for market investments.
The global hedge fund market trends are as follows:
In 2021, hedge fund assets will reach an all-time high, with one of the industry's largest positive net inflows in over a decade. Despite the fact that the hedge fund industry has grown significantly over the last decade, the expansion has been driven by hedge fund performance rather than positive net cash flows. The growth of hedge fund markets will be driven by institutional investors moving away from low-yielding fixed income investments and toward hedge fund strategies with higher expected returns, as well as strategies that are uncorrelated to the performance of the capital markets.
The hedge fund industry appears to be consolidating and fund managers around the world appear to be shifting their strategies to be more defensive. Investors' interest in hedge fund strategies has shifted slightly since 2019. Multi-strategy and quant equity hedge funds, for example, are once again among the most popular ones. Generalist Equity, which may be low in comparison to the other equity hedge fund strategies, such as sector-specific, market neutral, and the aforementioned quant equities, has witnessed a dramatic shift in sentiment. Therefore, this consolidation overtime is expected to foster the market growth of the global hedge fund market in the coming years.
COVID-19 Impact Analysis
Key Benefits of the Report
Questions Answered in the Alternative Financing Market Research Report
Hedge Fund Market Report Highlights
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Key Market Players | AQR Capital Management LLC, Davidson Kempner Capital Management LP, Two Sigma Investments LP, Man Group Ltd, Renaissance Technologies LLC, Millennium Management LLC, Citadel Enterprise Americas LLC, Elliott Investment Management LP, Black Rock Inc., ridgewater Associates LP |
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