Overview

Safe bet: Industry revenue will rise due to increased optimism and demand

IBISWorld’s Hedge Funds market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • Increased regulation and an escalating focus on the industry’s tax structure have the potential to harm profit
  • Domestic regulation surrounding the financial sector continues to intensify
  • Hedge funds are expected to return to growth as they successfully navigate the volatile global economy

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    Industry Analysis & Industry Trends

    Over the past five years, the Hedge Funds industry has fared well thanks to the continued satisfaction of institutional investors with regard to the performance of hedge funds. While the industry has received a considerable amount of criticism regarding its performance in comparison to US equities, an increasing amount of industry professionals have called into question the relevance of benchmarking hedge fund returns exclusively against equity performance. Nevertheless, this criticism has hampered the industry's traditional fee structure. Over the next five years, the industry is expected to continue performing well; however, increased regulation and compliance costs will likely hamper revenue growth over the period...

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    Industry Report - Industry Products Chapter

    Generally structured as private investment partnerships, hedge funds raise capital from a limited number of very large and sophisticated investors. Hedge funds then invest this capital in a range of securities using various investment strategies. On average, hedge funds generate revenue from a 1.4% fee on total assets under management (AUM) and a 17.0% share in investment profit. Because revenue is correlated with AUM, the following services are ranked by estimated AUM of the hedge funds that specialize in these investment strategies. Multi-strategy hedge funds engage in a variety of investment strategies to diversify holdings and mitigate downturns in one or more markets. Other strategies include option strategies, mutual fund timing and statistical arbitrage offerings, among others.

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    Additional Insights for the Hedge Funds Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Hedge Funds Industry are

  • Having a good reputation
  • Must comply with government regulations
  • Having a high prior success rate (including completed prior contracts)
  • IBISWorld analysts also discuss how external factors such as Demand from retirement and pension plans and S&P 500 in the Hedge Funds industry impact industry performance..

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    Industry Products

    What is the Hedge Funds Industry?

    Companies in this industry pool investments, securities or other assets on behalf of shareholders, unit holders or other beneficiaries. This industry comprises hedge funds and 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.

    Industry Products
    Equity focus
    Fixed income focus
    Emerging markets
    Event-driven
    Multi-strategy
    Macro
    Distressed securities
    Industry Activities
    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

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Demand from retirement and pension plans
  • S&P 500
  • Investor uncertainty
  • Access to credit
  • Regulation

  • Current Performance
  • Historical performance
  • Recent developments
  • Regulation and compliance costs
  • Chart: Revenue Growth

  • Industry Outlook
  • Mitigating risk
  • Legislation introduction
  • Table: Hedge Funds Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Hedge Funds Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Portfolio Management
  • Retirement & Pension Plans
  • Private Equity, Hedge Funds & Investment Vehicles
  • Consumers

  • Key Selling Industries
  • Investment Banking & Securities Dealing
  • IT Consulting
  • Software Publishing
  • Stock & Commodity Exchanges

  • Products & Services
  • Equity focus
  • Fixed income focus
  • Multi-strategy
  • Other
  • Emerging markets
  • Event-driven
  • Macro
  • Distressed securities
  • Chart: Hedge Funds Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Pension funds
  • Other
  • Wealth managers
  • Insurance companies
  • Sovereign wealth funds
  • Banks
  • Fund of funds
  • Endowments and foundations
  • Chart: Major Market Segmentation for the Hedge Funds Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesCompliance costs and other expenses
  • Chart: Cost Structure Benchmarking – Sector vs Hedge Funds

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Hedge Funds Industry

  • Industry Globalization
    Major Companies
    Bridgewater Associates LP
  • Table: Bridgewater Associates LP - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Hedge Funds Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Hedge Funds Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Total Assets (2007-2021)
  • S&P 500 Index (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    2.0 And 20.0
  • The industry's traditional fee structure that refers to a flat 2.0% fee of total assets under management and a right to 20.0% of any profit earned.
  • Assets Under Management (Aum)
  • The value of the assets that a hedge fund manages on behalf of clients.
  • Distressed Debt
  • The debt of companies that have filed or are likely to file for bankruptcy.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Hedge Funds:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Hedge Funds market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Hedge Funds, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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