Key Takeaways
- • The Hedge Fund Association and SeaGlass Technology released results of their 2025 Cybersecurity Survey, drawing on more than 400 hedge fund managers, institutional investors, and industry service providers.
- • 78 percent of surveyed firms increased their cybersecurity budgets in 2025, per the survey.
- • Phishing is the top cited threat, named by 65 percent of respondents as their primary concern, and 42 percent plan to outsource key cybersecurity functions in the next cycle.
- • Operating models are split: 45 percent rely on in-house teams, 40 percent use a hybrid structure, and 15 percent fully outsource cybersecurity programs.
- • A meaningful portion of respondents reported a cybersecurity incident in the last 12 months, with many citing third-party vendors as contributors.
Summary
The Hedge Fund Association (HFA), in partnership with SeaGlass Technology, announced the results of its 2025 Cybersecurity Survey, which captured input from more than 400 hedge fund managers, institutional investors, and industry service providers. According to the survey, the findings point to an industry accelerating its investment in cybersecurity amid heightened regulatory scrutiny, sophisticated threat vectors, and persistent operational vulnerabilities.
Budget growth was a central finding. According to the survey, 78 percent of firms increased their cybersecurity budgets in 2025. Phishing remained the most commonly cited threat, named by 65 percent of respondents as their primary concern. Looking ahead, 42 percent of firms plan to outsource key cybersecurity functions in the next cycle.
Operating models across the sector remain diversified. Per the survey, 45 percent of firms rely on in-house teams, 40 percent use a hybrid structure, and 15 percent fully outsource their cybersecurity programs. Respondents also reported varying levels of maturity in areas including adoption of cybersecurity frameworks, regular third-party audits, remediation timelines, phishing and awareness training, and consistency of incident response planning.
Incident exposure remains significant. A meaningful portion of respondents reported experiencing a cybersecurity incident within the last 12 months, and many identified third-party vendors as contributors. The survey indicates that firms plan to increase investment in threat detection, incident response, cloud and endpoint security, identity and access management, and automation over the next 12 to 24 months.
The HFA describes its mission as advancing transparency, development and trust in alternative investments. SeaGlass Technology specializes in managing hedge fund IT and cybersecurity through a proprietary methodology and a virtual CISO team.
Budget growth was a central finding. According to the survey, 78 percent of firms increased their cybersecurity budgets in 2025. Phishing remained the most commonly cited threat, named by 65 percent of respondents as their primary concern. Looking ahead, 42 percent of firms plan to outsource key cybersecurity functions in the next cycle.
Operating models across the sector remain diversified. Per the survey, 45 percent of firms rely on in-house teams, 40 percent use a hybrid structure, and 15 percent fully outsource their cybersecurity programs. Respondents also reported varying levels of maturity in areas including adoption of cybersecurity frameworks, regular third-party audits, remediation timelines, phishing and awareness training, and consistency of incident response planning.
Incident exposure remains significant. A meaningful portion of respondents reported experiencing a cybersecurity incident within the last 12 months, and many identified third-party vendors as contributors. The survey indicates that firms plan to increase investment in threat detection, incident response, cloud and endpoint security, identity and access management, and automation over the next 12 to 24 months.
The HFA describes its mission as advancing transparency, development and trust in alternative investments. SeaGlass Technology specializes in managing hedge fund IT and cybersecurity through a proprietary methodology and a virtual CISO team.
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