Overview
- Industry capital climbed to a record $4.98 trillion at the end of Q3, marking an eighth straight quarterly increase, according to Hedge Fund Research.
- Net investor inflows totaled about $33.7–$34 billion in Q3, the largest quarterly haul since 2007, led by pensions, insurers, sovereign funds, endowments and family offices.
- HFR’s Fund Weighted Composite Index rose roughly 5–5.4% in the quarter, contributing to asset growth and lifting year‑to‑date gains to about 9.5%.
- Equity hedge funds gained 7.2% with $18 billion of net inflows and roughly $1.5 trillion in assets, while macro funds returned 4.7% with $1.7 billion of inflows and $759 billion in capital.
- Hedge fund counts reached a decade high of 8,464 as banks reported stronger prime brokerage profits, with HFR citing M&A activity, AI/tech and crypto bets, and rate expectations as key drivers alongside rising concentration and leverage risks.