Hedge Fund Market: Institutional Investors Held 73% Share, with Asia-Pacific Recording the Fastest CAGR of 13% through 2030, Says Mordor Intelligence

The hedge fund market is undergoing a structural shift, fueled by the rapid adoption of advanced data-driven and quantitative strategies, strengthened by the attractiveness of higher carry yields on cash-secured positions.

Hyderabad, India, Nov. 21, 2025 (GLOBE NEWSWIRE) -- According to Mordor Intelligence, the hedge fund market size is estimated at USD 5.87 trillion in 2025 and is expected to approach USD 11.05 trillion by 2030, expanding at a 10.81% CAGR. Momentum is being driven by institutional portfolio shifts, stronger cash-collateral yields in a high-rate environment and growing use of AI across investment processes. Asia-Pacific is emerging as the fastest-advancing region as regulatory improvements redirect capital flows, while multi-strategy platforms continue to strengthen their position through advanced risk systems and scalable data infrastructure. Rising transparency demands, margin tightening, and the adoption of tokenized fund structures are also reshaping how managers attract and retain assets. 

Regional Market Overview 

North America continues to lead the hedge fund landscape, supported by a strong base of experienced investors, established broker networks, and well-developed financing channels. Managers in the region benefit from highly liquid markets that enable diverse trading approaches, while Canadian institutions provide consistent backing for specialized strategies. However, expansion is slowing as some public systems shift allocations toward other private-market assets and as regulatory requirements raise the cost of using leverage.

Asia-Pacific, meanwhile, is emerging as the industry’s fastest-moving region. Easing policy restrictions, rising wealth, and improving talent mobility are drawing more global platforms into hubs like Hong Kong and Singapore. Australia’s retirement funds and Japan’s institutional investors are also increasing their engagement, supported by deeper capital markets and varied trading environments. These dynamics are positioning the region as a growing force in the evolution of the global hedge fund industry.

Market Drivers and Growth Patterns 

Elevated Interest Rates Strengthen Carry Opportunities for Hedge Funds 

With interest rates staying elevated, hedge funds are benefiting from stronger carry on their cash positions. Rising short-rebate income has become a meaningful tailwind, especially for net-short strategies, seeing a clear uplift in performance. Daily compounding on cash collateral further enhances returns even before alpha generation, while the growing use of major basis trades highlights how central these rate-driven carry dynamics have become in today’s market.

Institutions Shift Strategies as Traditional Portfolios Face Pressure 

As global policy tightening and geopolitical uncertainty challenge the reliability of classic portfolio mixes, institutions are steadily redirecting more capital toward alternative strategies. Hedge funds are increasingly viewed as essential tools for risk management and return diversification, gaining stronger footing across pensions, endowments, and sovereign investors. Rather than signaling higher risk appetite, this movement reflects a search for more resilient alpha sources. With wider dispersion across major asset classes, active managers now have greater room to capture differentiated return streams, supporting a sustained rise in baseline allocations to hedge fund strategies.

Major Segments of Hedge Fund Covered in this Report   

By Strategy 

• Long/Short Equity 

• Event-Driven 

• Global Macro 

• Relative Value 

• Multi-Strategy 

• Quantitative / Systematic 

• Fund of Funds 

By Investor Type 

• Institutional Investors (Pension Funds, SWFs, Insurers) 

• High-Net-Worth & Family Offices 

• Retail (Qualified) 

By Fund Structure 

• Onshore (US 3(c)(7), UCITS, etc.) 

• Offshore (Cayman, Luxembourg) 

By Distribution Channel 

• Direct Institutional Mandates 

• Fund of Funds 

• Wealth / Private-Bank Platforms 

• Digital Marketplaces & Tokenized Funds 

By Geography 

• North America 

• South America 

• Asia-Pacific 

• Europe 

• Middle East & Africa 

Overview – Hedge Fund Industry 

Study Period	2019-2030
Market Size Forecast	USD 11.05 Trillion (2030)
Industry Expansion	Growing at a CAGR of 10.80% during 2025-2030
Fastest Growing Market for 2025-2030	Asia-Pacific projected to record the fastest growth rate

Hedge Fund Companies     

• Man Group plc 

• Renaissance Technologies LLC 

• Millennium Management LLC 

• AQR Capital Management 

• D.E. Shaw & Co. 

• Two Sigma Investments LP 

• Point72 Asset Management 

• Brevan Howard Asset Management 

• Elliott Management Corporation 

• Third Point LLC 

• Tiger Global Management 

• Pershing Square Capital Management 

• Appaloosa Management LP 

• Baupost Group 

• Farallon Capital Management 

• Capula Investment Management 

• GSA Capital Partners 

• Sculptor Capital Management (Och-Ziff) 

Get in-depth industry insights on the hedge fund industry report: https://www.mordorintelligence.com/industry-reports/global-hedge-fund-industry?utm_source=globenewswire 

Explore related reports from Mordor Intelligence 

Private Equity Market: The global private equity market is segmented by fund type (buyout & growth, venture capital, mezzanine & distressed, secondaries & FoFs), by sector (technology, healthcare, real estate, financial services, industrials, consumer & retail, energy & power, media & entertainment, telecom, others), by investments (large cap, upper middle market, lower middle market, small & SMID), and by geography. 
https://www.mordorintelligence.com/industry-reports/global-private-equity-market?utm_source=globenewswire

Pension Funds Market: The global pension funds market is segmented by plan type (defined contribution, defined benefit, hybrid & others), by investment strategy (active, passive), by sponsor type (public-sector plans, private-sector plans), by geography of investment (onshore, offshore), and by region.

Sustainable Finance Market: The sustainable finance market is segmented by investment type (equity funds, fixed-income funds, mixed/multi-asset allocation), by transaction type (green bonds, social bonds, sustainability bonds, ESG investing, others), by industry vertical (utilities & power, transport & logistics, chemicals & materials, food & agriculture, public sector, financial institutions), and by geography. 

About Mordor Intelligence:     
  
Mordor Intelligence is a trusted partner for businesses seeking comprehensive and actionable market intelligence. Our global reach, expert team, and tailored solutions empower organizations and individuals to make informed decisions, navigate complex markets, and achieve their strategic goals.     
     
With a team of over 550 domain experts and on-ground specialists spanning 150+ countries, Mordor Intelligence possesses a unique understanding of the global business landscape. This expertise translates into comprehensive market analysis and research reports as well as syndicated and custom research offerings that cover a wide spectrum of industries, including aerospace & defence, agriculture, animal nutrition and wellness, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & power, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, investment opportunities, and logistics.  

CONTACT: For any inquiries, please contact:
 
media@mordorintelligence.com
https://www.mordorintelligence.com/contact-us