(MENAFN- GlobeNewsWire - Nasdaq) 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:

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