Hedge funds have signficant role in financial markets. They are type of investment fund that gives investors the opportunity to earn big profits because hedge funds do not have to abide by the rules of financial markets as well as other investment funds. Since its founding in the 1949 they have been interesting to investors investing in them and their value is growing. Hedge funds operate worldwide and the largest financial market in the United States had the most hedge funds through history. In the financial market of Europe hedge funds, although interesting to investors, do not have the same size as in the United States. In Croatia, Hedge funds are less popular than in the rest of the world, but over the past few years they have been growing popularity, and are expected to further increase. The data collected suggest that in the future this way of investing will be even more popularised and that its significance will grow even more in the world financial market.