“Our analysis reveals a strong and vibrant global hedge fund industry,” commented Daniel Levo, VP Investor Solutions at Sigtech. “Despite a healthy growth in emerging hedge fund centers, US-based managers continue to dominate the industry, both in absolute numbers and in terms of new fund launches.”
hedge fund strategies
The most popular hedge fund strategy is equity long/short, followed by multi strategy, equity others (eg, long bias, short bias), fixed income credit and event driven.
However, crypto is the fastest growing sub-category and now accounts for about 3% of all hedge funds (774 in total). Of the new launches since 2019, cryptos make up about 6% (310 total).
More than a fifth of the funds implement a purely quantitative investment process and about 2% claim to use artificial intelligence.
“The strong level of new hedge fund launches reflects continued strong demand from investors for innovative and uncorrelated investment strategies to meet return expectations in increasingly challenging market environments,” Levue said. “Hedge fund growth shows no signs of being driven by ever-increasing investment opportunities in the market and the development of new data and tools available to these funds.”