MFA Blog

Hedge Fund Assets Top $2.5 Trillion

Posted on October 18, 2013

Total capital invested in hedge funds surged by $94 billion in the past quarter, pushing assets to a fifth consecutive quarter record in Q3 2013.  Total industry assets now stand at $2.51 trillion.

Earlier today, industry data provider Hedge Fund Research released its quarterly Global Hedge Fund Industry Report, which noted growth in the previous quarter was distributed across all strategy areas.  The industry also experienced the highest inflows since the second quarter of 2011, with investors allocating over $23 billion of net new capital to hedge funds during the quarter.

“Hedge fund capital flows in [Q3 2013] were consistent with trends and themes observed throughout the broader asset management industry, as investors increased allocations to innovative and sophisticated strategies that offer dynamic exposure to an increasingly complex financial market environment,” Kenneth Heinz, Hedge Fund Research’s president, said in a press release.  Noting the numerous global challenges that faced investors this quarter, Heinz added, “With all of these political undertones remaining fluid and ongoing concerns, and of no sign of this changing in the near term, these trends are likely to drive record hedge fund industry capital flows into 2014.”

Read the full Hedge Fund Research press release here to learn more about this story.