Hedge Fund Managers NAICS 523940

The 3,600 hedge fund managers in the US manage investment vehicles that use alternative investment strategies, including hedging against market downturns, investing in asset classes such as currencies or distressed securities, and utilizing return-enhancing tools such as leverage, derivatives, and arbitrage.

Dependence on Large Investors

Hedge funds depend on institutional investors and high net worth individuals to provide capital for investment.

Competition from Alternative Investment Vehicles

Hedge funds compete with a variety of providers of alternative investment vehicles, including investment management firms, mutual funds, insurance companies, banks, brokerage firms, private equity, and other financial institutions.

Industry size & Structure

The global hedge fund industry includes approximately 15,000 active funds that hold over $4.5 trillion in assets under managements (AUM).

• The North American hedge fund industry accounts for nearly 70% of global AUM, according to Pensions & Investments. The US is home to over 3,600 registered hedge funds, according to Zippia, and the top 15 have almost $600 billion in AUM.

• The industry is concentrated with the 50 largest firms accounting for 55% of industry revenue.

• The US is home to 693 $1 billion+ hedge funds and accounts for 56% of global funds valued at $1 billion+.

• Large firms include Bridgewater Associates, AQR Capital Investment, and Sculptor Capital Management.

• Large investment firms with hedge fund operations include BlackRock, Blackstone, and Oaktree Capital.

• According to a 2022 survey by the Alternative Investment Management Association, small hedge fund firms can break even managing $64 million in assets, down from the 2017 break-even point of $86 million in assets, while two-thirds of investors will consider allocating to hedge funds with less than $100 million in assets under management.