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 fall on rates, AI and geopolitical risks;
Goldman Sachs, UBS, Citco, SS&C lead service providers
CHICAGO, (October 13, 2026) – Both new hedge fund launches and liquidations fell sharply through mid-year as investors positioned for powerful trends of sharply increased interest rates, growing tensions involving AI acceleration, and continued geopolitical risks impacting energy markets and global supply chains. The estimated number of new funds launched in 2Q26 fell to 100, a sharp decline from the 166 launches in 1Q26 and the FY 2025 launch total of 561, which was 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 also fell sharply in 2Q26, as an estimated 70 funds shut down in the quarter after an estimated 129 funds liquidated in 1Q26, which was the highest quarterly total since 2Q24. As previously reported by HFR, total hedge fund industry capital reached another record level through 2Q 2026, surging to an estimated $5.63 trillion.
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