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As of 2024, there were roughly over equity long/short hedge funds operating worldwide. These are hedge funds that take both long and short positions in investments. While multi-strategy hedge funds were among the top performers by net annualized return, these hedge fund types formed a lower portion of the hedge fund pool, with *** being operational in 2024. 

Growth of the hedge fund industry 

The hedge fund industry has experienced steady growth since its boom in the 1990s. Despite facing setbacks including that of the 2008 fiscal crisis, the industry has rebounded, managing assets valued at over *** U.S. dollars in 2024. This continued success has been partly due to the industry's resilience and adaptability, adjusting investment strategies and portfolio holdings to changing market dynamics.

How do different fund strategies impact performance? 

Hedge fund performance can vary considerably depending on the investment strategy adopted. Those following a multi-strategy approach achieved the highest net performance over one-, three-, and five-year periods. This strategy allocates funds across multiple sub-strategies and asset classes, resulting in highly diverse portfolios with a one-year median net performance exceeding ** percent in 2024. Conversely, arbitrage strategies, which leverage mispricing in equity shares to generate maximum returns, delivered the *** net returns over a one-year period in 2024.