Hedge Funds Percent of Volume Traded

Hedge funds are of special concern because they operate in what some have termed a regulatory black hole and often utilize short selling strategies in a manipulative fashion.

And the hedge funds industry just keeps growing. According to the Wall Street Journal, hedge fund volume accounts for:

  • 55% of emerging market debt
  • 30% of US equity trading
  • 35% of high yield derivatives
  • 10% of US fixed-income securities

It is now estimated that there are between 10,000 and 15,000 hedge funds worldwide. Alternative assets will attract 2.5 trillion in new fund flows from investors worldwide by 2011, according to Casey, Quirk & Associates. This suggests that hedge fund assets will double in approximately 3.5 years.