Hedge funds are enjoying their strongest fundraising year in more than a decade, with investors allocating fresh capital in search of resilient, uncorrelated returns amid volatile markets, according to a report by Bloomberg citing data from Hedge Fund Research.
Net inflows reached $25bn in Q2 2025, bringing first-half allocations to more than $37bn – the highest level since 2015. The renewed momentum follows a period of subdued appetite for hedge fund strategies.
Performance has been a key driver with data from Citco showing that hedge funds have now delivered 11 consecutive quarters of positive returns, with investors drawn to their ability to navigate shocks such as April’s tariff-driven volatility.
Appetite remains especially strong for the industry’s largest multi-strategy managers, including Millennium Management and Citadel, many of which remain closed to new investors.
