UK Hedge Funds Market Size (2024 - 2029)

The UK Hedge Funds Market is expected to experience significant growth, driven by the sector's ability to manage risk and employ complex trading strategies. Hedge funds contribute to market stability by providing liquidity for mispriced assets, which is crucial in thin markets. The Covid-19 pandemic impacted the financial landscape, with some hedge funds capitalizing on market disruptions, particularly in the airline sector. Despite initial profits, the market faced challenges as economic uncertainty led to substantial withdrawals from hedge funds.

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Market Size of UK Hedge Funds Industry

UK Hedge Funds Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 8.00 %
Market Concentration Medium

Major Players

UK Hedge Funds Market Major Players

*Disclaimer: Major Players sorted in no particular order

UK Hedge Funds Market Analysis

The UK Hedge Funds Market is poised to grow at a CAGR of more than 8% during the forecast period. 

Hedge funds are investment companies that make an alternative investment option and perform trades from pooled investment funds. Hedge funds find their success in utilizing focusing on risk management, complex trading techniques, and leveraging short selling. 

Hedge funds play a crucial role in providing liquidity for mispriced assets, particularly when large volumes are traded in thin markets thereby reducing market volatility. This is particularly important given the rapid growth in the volume of new-generation structured products issued by investment banks

Covid-19 has dramatically altered the financial and emotional landscape for many people in the UK. Covid 19 pandemic hit at the start of 2020 some hedge funds sought to make gains because of the stock market collapse. Mainly the airline sector, which suffered particularly very badly and became a target for short sellers. Hedge funds that were well-positioned in anticipation of the market shock made significant profits during this period. however, the sector suffered as many investors pulled billions out of hedge funds amid economic uncertainty as well as market volatility

UK Hedge Funds Industry Segmentation

An understanding of the present status of the UK hedge fund industry to deep-dive into the regulatory landscape, along with detailed market segmentation, product types, current market trends, changes in market dynamics, and growth opportunities. In-depth analysis of the market size and forecast for the various segments. The report offers market size and forecasts in value (USD Billion) for all the above segments. The UK Hedge Fund Industry is segmented based on the core investment strategies (Equity, Alternative Risk Premia, Crypto, Equities others, Event-Driven, Fixed Income Credit, Macro, Managed Futures, Multi-Strategy, Relative Value). The report offers market size and forecasts for the UK Hedge Funds Market in value (USD Billion) for all the above segments.

By Core Investment Strategies
Equity
Alternative Risk Premia
Crypto
Equities others
Event-Driven
Fixed Income Credit
Macro
Managed Futures
Multi-Strategy
Relative Value
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UK Hedge Funds Market Size Summary

The UK hedge funds market is experiencing a robust growth trajectory, driven by its strategic focus on risk management and complex trading techniques. Hedge funds, as alternative investment vehicles, play a pivotal role in enhancing market liquidity, particularly in thin markets where they help mitigate volatility by trading mispriced assets. The market's resilience was tested during the Covid-19 pandemic, which initially led to significant profits for well-positioned funds that capitalized on market downturns, such as those in the airline sector. However, the sector also faced challenges as economic uncertainty prompted substantial withdrawals from hedge funds. Despite these fluctuations, the market continues to evolve, with a notable shift towards digital asset hedge funds and a growing interest in venture capital investments, as evidenced by firms like Tiger Global Management.

The UK asset management industry, a significant component of the hedge funds market, predominantly serves institutional clients, with pension funds being the largest segment. The market is characterized by a diverse investment approach, with a substantial portion of assets allocated to equities and fixed income, while property and cash remain less prominent. The report highlights the dominance of major players such as Capula Investment Management, Man Group, and Brevan Howard, all based in London, underscoring the city's status as a global financial hub. Additionally, the emergence of new entrants like SurgoCap Partners, led by Maia Gaonkar, marks a significant development in the market, reflecting a broader trend towards diversification and innovation within the hedge funds sector.

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UK Hedge Funds Market Size - Table of Contents

  1. 1. MARKET DYNAMICS AND INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Insights on Various Regulatory Trends Shaping the Market

    5. 1.5 Insights on Impact of Technological Advancements in the Market

    6. 1.6 Industry Attractiveness - Porters' Five Forces Analysis

      1. 1.6.1 Threat of New Entrants

      2. 1.6.2 Bargaining Power of Buyers

      3. 1.6.3 Bargaining Power of Suppliers

      4. 1.6.4 Threat of Substitutes

      5. 1.6.5 Intensity of Competitive Rivalry

    7. 1.7 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Core Investment Strategies

      1. 2.1.1 Equity

      2. 2.1.2 Alternative Risk Premia

      3. 2.1.3 Crypto

      4. 2.1.4 Equities others

      5. 2.1.5 Event-Driven

      6. 2.1.6 Fixed Income Credit

      7. 2.1.7 Macro

      8. 2.1.8 Managed Futures

      9. 2.1.9 Multi-Strategy

      10. 2.1.10 Relative Value

UK Hedge Funds Market Size FAQs

The UK Hedge Funds Market is projected to register a CAGR of greater than 8% during the forecast period (2024-2029)

Capula Investment Management LLP, Man Group, Brevan Howard Asset Management, Lansdowne Partners and Arrowgrass Capital Partners are the major companies operating in the UK Hedge Funds Market.

UK Hedge Funds Market Report Snapshots

UK Hedge Funds Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)