Insights into the dynamics currently reshaping the landscape of the industry. The report includes an analysis of performance by fund management fee and estimation of hedge fund industry launches and liquidations.
Highest launch quarter since 1Q22 as industry capital surges to record; Liquidations remain near lowest levels in 20 years; Goldman Sachs, UBS, JPM, Morgan Stanley lead prime brokerage
CHICAGO, (January 16, 2026) – New hedge fund launches accelerated into year-end while liquidations remained near historic lows, as investors positioned for evolving geopolitical risk, strong economic growth, and uncertainty about inflation heading into 2026. The estimated number of new funds launched in 3Q25 rose to 165, bringing the YTD 2025 total to 427 through the third quarter, on strong pace for the highest annual total since 2021, according to the latest HFR Market Microstructure Report, released by HFR®, the established global leader in the indexation, analysis and research of the global hedge fund industry. Hedge fund liquidations remained at historically low levels in 3Q, as only an estimated 77 funds closed during the quarter, bringing the YTD 2025 total to 215, far below the estimated 406 liquidations in 2024, which was the lowest level since 2004. As previously reported by HFR, total hedge fund industry capital reached another record level to begin 4Q25, surging to an estimated $4.98 trillion.
The HFR Diversity Universe delivers the industry’s essential database of women & minority owned hedge funds. Our research now includes an overview of HFRI Women Index and HFRX Diversity Women Index.
Stay up-to-date on key trends affecting the hedge fund industry. HFR’s specially-priced bundled subscription includes quarterly publications of HFR Global, Asian, Emerging Markets, and Market Microstructure Reports. The ultimate resource available for the industry insider.
