HFR Global Hedge Fund Industry Report

HEDGE FUND CAPITAL SURPASSES $4 TRILLION MILESTONE DRIVEN BY INFLATION, GEOPOLITICAL VOLATILITY

HFRI Institutional Equity Hedge Index leads YTD strategy gains through 3Q;
Investors allocate over $2 billion in new capital across all strategies;
Inflows again concentrated in industry’s largest firms

CHICAGO, (October 23, 2023) – Hedge fund capital surpassed the $4 trillion milestone to begin the fourth quarter, with increases driven by macroeconomic uncertainty, including sharply increased interest rates, continued inflationary pressures and economic weakness, as well as geopolitical uncertainty, including military conflicts in Russia/Ukraine and the Middle East. Total hedge fund assets increased for the fourth consecutive quarter in 3Q 2023 as investors allocated new capital to Event Driven and Relative Value Arbitrage strategies, while paring allocations to Equity Hedge strategies. Hedge funds extended YTD gains through the volatile third quarter, with total global hedge fund capital rising to an estimated $4.0 trillion, a quarterly increase of nearly $53 billion, as reported today by HFR®, the established global leader in the indexation, analysis and research of the global hedge fund industry, in the latest release of the HFR Global Hedge Fund Industry Report. Investors allocated an estimated $2.3 billion in new capital to the hedge fund industry in 3Q23, the third consecutive quarter of net asset inflows, with inflows led by Event Driven strategies.

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