Hedge Fund Manager Demographics and Statistics [2024]: Number Of Hedge Fund Managers In The US (2024)

FAQs

How many hedge fund managers are there in the US? ›

Despite hedge fund activity in other regions globally expanding alongside that of the US, the country accounts for 3,405 of the 5,523 institutional investors active in hedge funds and 3,319 of the 5,383 active hedge fund managers tracked by Preqin.

Hedge Funds (HF) are up 4.2% year-to-date as of March 2024, which compares well with diversified global allocations, including 40/60 Equity/Bond portfolios which are up around +2.2% and have higher volatility. HF performance year-to-date was led by CTAs, EM focused and L/S Equity both Directional and Neutral.

Eurekahedge offers the largest set of hedge funds databases in the world, covering 29,586 funds globally.

The 2 and 20 is a hedge fund compensation structure consisting of a management fee and a performance fee. 2% represents a management fee which is applied to the total assets under management. A 20% performance fee is charged on the profits that the hedge fund generates, beyond a specified minimum threshold.

Who Is the Richest Hedge Fund Manager? Ken Griffin of Citadel is both the richest hedge fund manager and the highest paid. In 2022, he earned $41. billion, and by the beginning of 2023 his net worth was estimated at $35 billion.

Specifically, 75.50% of U.S. based hedge fund managers are white while 24.50% of them are minorities, of which 10.45% are asians, 9.65% are blacks, and 4.40% are latinos.

It is not uncommon for a hedge fund to require at least $100,000 or even as much as $1 million to participate. Unlike mutual funds, hedge funds avoid many of the regulations and requirements within the Securities Act of 1933.

Overall, Microsoft stands as the most popular company, with 874 hedge funds holding the stock. As the megacap ramps up its AI offerings, it is capturing significant interest from hedge funds. In 2024, Microsoft shares are up over 20% as of June 24, sitting near all-time highs.

A "2 and 20" annual fee structure—a management fee of 2% of the fund's net asset value and a performance fee of 20% of the fund's profits—is a standard practice among hedge funds.

What is the average fee for a fund manager? ›

The industry typically refers to this as an investment management fee and averages between 1-2% of assets (i.e. A $100,000 investment could cost you between $1,000 - $2,000 annually).

Based on recent data, the average annual return on investment for investors in a typical hedge fund is around 7.2%, with a Sharpe ratio of 0.86 and market correlation of 0.9. However, it's important to note that performance can vary significantly among different hedge funds.

The market size, measured by revenue, of the Hedge Funds industry was $120.5bn in 2023. What was the growth rate of the Hedge Funds industry in the US in 2023? The market size of the Hedge Funds industry increased 0.6% in 2023.

The money is a big draw as well: if you're at the right fund and you perform well, you can earn into the mid-six-figures, up to $1 million+, even as a junior-level employee. The top individual Portfolio Managers can earn hundreds of millions or billions each year.

Hedge fund managers typically earn above-average compensation, often from a two-and-twenty fee structure. Hedge fund managers typically specialize in a particular investment strategy that they then use to power their fund portfolio's mandate for profits.

The US wealth management market is extraordinarily vast, with the Bureau of Labor Statistics estimating there were more than 275,000 personal financial advisors working in the US in 2020 alone.