The global hedge fund industry saw net new inflows of $9.1 billion in the first quarter, the first quarter of net inflows since the first quarter of 2022, says HFR. Overall, total global hedge fund capital climbed by more than $50 billion (including performance gains) to $3.88 trillion in the quarter as investors allocated new capital as key banking and financial risks surged and the risk of recession increased. The investible HFRI 500 Fund Weighted Composite index gained 0.5 per cent in the first quarter, led by directional equity hedge and event-driven strategies. Directional equity hedge strategies led both capital inflows and total strategy asset increases in the first quarter as "tactical positioning through the March surge in risk, as well as underlying strength in technology drove gains," it says. Total equity hedge capital increased by an estimated $33 billion to end the first quarter at $1.11 trillion.
- PWC