How many hedge funds are there?


Quick Answer

According to CNBC, there were 11,000 hedge funds that held $2.6 trillion in 2013. Of those 11,000 hedge funds, 7,524 were traditional hedge funds, 1,723 were managed futures and 2,074 were funds of hedge funds.

Continue Reading

Full Answer

A hedge fund is a business structure in which a number of investors pool their capital and use it to invest in securities. Hedge funds are not capped by regulators, which means that the funds can get extremely large. These types of funds are managed by professional firms and are only offered to extremely rich and knowledgeable investors. Hedge funds originally attempted to short the market by selling securities, which would allow the funds to "hedge" investments against fluctuations in the market. While hedge funds are not traditionally monitored or regulated, the United States and Europe placed some regulatory rules on hedge funds after the financial crisis in 2008.

In 2014, eVestment, an investment tracking company, gathered information that was voluntarily given to them by hedge funds. After consolidation of the data, the company determined that there were about 11,000 total hedge funds in 2013 that hold collectively $2.6 trillion, and $2.3 trillion of that total is held by the traditional hedge funds, which represents about 1.1 percent of all funds.

Learn more about Financial Planning

Related Questions