Market Size of UK Hedge Funds Industry
| 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
*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 |
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.
UK Hedge Funds Market Size - Table of Contents
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1. MARKET DYNAMICS AND INSIGHTS
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1.1 Market Overview
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1.2 Market Drivers
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1.3 Market Restraints
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1.4 Insights on Various Regulatory Trends Shaping the Market
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1.5 Insights on Impact of Technological Advancements in the Market
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1.6 Industry Attractiveness - Porters' Five Forces Analysis
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1.6.1 Threat of New Entrants
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1.6.2 Bargaining Power of Buyers
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1.6.3 Bargaining Power of Suppliers
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1.6.4 Threat of Substitutes
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1.6.5 Intensity of Competitive Rivalry
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1.7 Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Core Investment Strategies
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2.1.1 Equity
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2.1.2 Alternative Risk Premia
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2.1.3 Crypto
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2.1.4 Equities others
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2.1.5 Event-Driven
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2.1.6 Fixed Income Credit
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2.1.7 Macro
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2.1.8 Managed Futures
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2.1.9 Multi-Strategy
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2.1.10 Relative Value
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UK Hedge Funds Market Size FAQs
What is the current UK Hedge Funds Market size?
The UK Hedge Funds Market is projected to register a CAGR of greater than 8% during the forecast period (2024-2029)
Who are the key players in UK Hedge Funds Market?
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.
