Hedge Funds Q2 2026: Preqin Quarterly Update

Shared AI exposure and market dislocation evolve the hedge fund playbook in Q2 2026

• Sensitivity of hedge fund returns to AI theme suggests the technology is reducing the effectiveness of diversification by strategy

• Crowding risks are emerging beneath strong returns, with growing concentration in a narrow group of technology stocks prompting refinement in strategies

• Energy supply shocks played a key role in shaping returns for arbitrage managers in the second quarter of 2026