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.
Liquidations remain near lowest levels since 2004;
Goldman Sachs, UBS, JPM, Morgan Stanley lead prime brokerage;
HFR launches Co-Investment Index
CHICAGO, (March 26, 2026) – New hedge fund launches accelerated into 2026 while liquidations remained near historic lows, as investors positioned for increasing geopolitical risk, AI and cryptocurrency volatility, and uncertain economic growth and inflation in 2026. The estimated number of new funds launched in 2025 rose to 562, 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 with closures totaling an estimated 287 liquidations, far below the 406 funds that shut down 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 2026, surging to an estimated $5.16 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.
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