- Advertisement -
- Advertisement -

Related

Hedge Funds Reclaim $4 Trillion Milestone

Latest Report

- Advertisement -

Stockholm (HedgeNordic) – At the onset of the fourth quarter, the global hedge fund industry’s assets under management surged past the $4 trillion threshold. This milestone was initially reached in the final quarter of 2021 before the industry experienced a decline in capital during 2022. According to Hedge Fund Research (HFR), investors allocated an estimated $2.3 billion in fresh capital to the hedge fund industry in the third quarter, marking the third consecutive quarter of net asset inflows.

“Total hedge fund capital surpassed the $4 trillion milestone again to conclude 3Q, a milestone initially surpassed in 4Q 2021 before capital declined in 2022, as a volatile combination of macroeconomic and geopolitical risks drove industry performance and investor allocations through a risk off market cycle,” states Kenneth J. Heinz, President of HFR. “Hedge funds have again navigated a powerful shift and negative reversal in risk tolerance and sentiment, as positive correlation between equities and bonds rose sharply throughout 3Q, presenting risks to classic, traditional long-biased strategies, as well as opportunities for funds tactically positioned for these trends.”

“Total hedge fund capital surpassed the $4 trillion milestone again to conclude 3Q, a milestone initially surpassed in 4Q 2021…”

Global hedge funds extended their year-to-date gains through the volatile third quarter, with the HFRI Fund Weighted Composite Index advancing 3.9 percent during the first nine months of the year. The hedge fund industry’s assets under management increased by $53 billion quarter-over-quarter during the three months ending in September. Investors allocated an estimated $2.3 billion in new capital to the hedge fund industry in the third quarter. This growth was fueled by macroeconomic uncertainty, including a sharp increase in interest rates, continued inflationary pressures, economic weakness, and geopolitical uncertainty stemming from military conflicts in Ukraine and the Middle East.

Inflows during the third quarter were concentrated in both mid-sized and the industry’s largest firms. Firms managing between $1 and $5 billion in capital received an estimated $2.9 billion in net investor inflows, while those managing over $5 billion experienced an estimated net asset inflow of $2.2 billion. In the first three quarters of 2023, the largest firms in the industry received an estimated $16.1 billion in net inflows, whereas medium-sized firms received an estimated net of $3.8 billion. In contrast, firms managing less than $1 billion experienced estimated outflows of $2.8 billion in the third quarter and $5.0 billion year-to-date through the end of September.

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Eugeniu Guzun
Eugeniu Guzun
Eugeniu Guzun serves as a data analyst responsible for maintaining and gatekeeping the Nordic Hedge Index, and as a journalist covering the Nordic hedge fund industry for HedgeNordic. Eugeniu completed his Master’s degree at the Stockholm School of Economics in 2018. Write to Eugeniu Guzun at eugene@hedgenordic.com

Latest Articles

Tidan to Launch Confluence, Its Integrated Multi-Strategy Fund

Stockholm-based Tidan Capital is preparing to launch Confluence, a new multi-strategy vehicle that brings the boutique’s internally managed strategies under one umbrella. The fund,...

State Pension Fund of Finland Sees Strong Hedge Fund Gains

The first half of 2025 brought a complex market backdrop shaped by shifting macroeconomic trends, tariffs, geopolitical uncertainty, and volatile investor sentiment. Although returns...

Espiria Rolls Out Long-Only Fund Led by Staffan Östlin

After more than a decade of picking stocks on both the long and short side, veteran fund manager Staffan Östlin is now running a...

The “Magic of Three”: Protean Select Turns Milestone into Major Allocation

Reaching the three-year mark is a key milestone and often a turning point for any emerging hedge fund. For Protean Select, the opportunistic equity...

Twelve Years On, Nordkinn Expands with Two PMs and Advisor

Twelve years after its inception, Nordkinn Asset Management is entering a new growth phase, expanding its investment team with the appointments of Arian Kalantari...

Merger Cleared: Carlsson Norén to Transition Funds to UCITS

After nearly two decades as an independent fund manager, Carlsson Norén Asset Management is joining Meriti Capital, following regulatory approval from Finansinspektionen. Its two...

Allocator Interviews

In-Depth: High Yield

Voices

Request for Proposal

- Advertisement -
HedgeNordic
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.