Hedge fund capital continued its upward trajectory, surpassing the historic first-quarter record and advancing beyond the $4.3 trillion mark in the second quarter of 2024. This growth comes as managers adeptly navigate a complex and shifting election cycle, alongside evolving geopolitical dynamics.
The imminent elections in Europe and the United States pose significant risks, including potential policy changes, economic transitions, trade adjustments, and structural disruptions in the coming months. These risks have heightened despite an improving economic outlook, increased mergers and acquisitions, and expectations for continued moderation in inflation and interest rate hikes by the US Federal Reserve.
According to the latest HFR Global Hedge Fund Industry Report, released today by HFR®, a leading authority in hedge fund indexation, analysis, and research, total hedge fund assets rose for the seventh consecutive quarter in Q2 2024. The assets reached an estimated $4.31 trillion, reflecting a quarterly increase of approximately $11 billion. This growth was primarily driven by performance-based gains and inflows into Relative Value Arbitrage and Macro strategies. However, these gains were partially offset by outflows from Equity Hedge and Event-Driven strategies.
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