Preqin 2025 Global Report: Hedge Funds

Hedge funds prove their risk mitigation role for investors but outflows haunt the asset class even as green shoots appear.

• Hedge funds AUM was up 11.5% in the 12 months to Sept. 30, 2024, but long-term outflows point to investors cooling on the asset class, although some strategies are still attracting capital

• Hedge funds prove their worth as risk mitigators in a volatile year, falling below equities but above public debt returns

• New manager launches sink to a record low, although total funds in market ticked up, led by niche and multi-strategy

• Sentiment towards hedge funds looks to be improving despite outflows and weak performance, with more investors looking to add to allocations this year compared with last