The US dominates the global hedge fund industry as it accounts for 72% of about $3.1 trillion of global assets under management (AUM) as of 30 June 2016, according to a report by Preqin.
The hedge fund industry in the US has increased by $13bn in the first half of 2016 – despite global outflows – and by $138bn since the start of 2015.
Sixty two percent (3,170) of the 5,092 institutional investors active in hedge funds, and 60% (3,209) of the 5,377 active hedge fund managers are in the US, the study revealed.
More than one-third (37%) of fund managers in the US are based in New York, together holding $1.1 trillion of assets which is 36% of global industry AUM. The city also represents 46% of US-based funds incepted since 2009 and has the most active institutional investors (544) in the US.
California follows New York with 341 investors in the state. New Jersey has 77 investors with an average current allocation to the hedge fund industry of 18.8%, which is the highest of any state.
Hedge funds in Pennsylvania charge 17.54%, the lowest average performance fee among the top 10 most active US states, while funds based in Virginia charge the highest average fee of 20%.
Massachusetts-based funds charge the lowest mean management fee at 1.25%, and Illinois-based funds charge the highest fee at 1.58%.