A growing number of hedge funds, including Swiss-based ADAPT Investment Managers, are shutting their doors to new investor capital following the industry’s strongest year for returns and inflows since the global financial crisis, according to a report by Bloomberg.
The move comes even as allocator demand continues to build.
The report cites unnamed people familiar with the matter as highlighting that ADAPT closed to new capital after growing assets to around $2bn, following gains of nearly 16% in 2025. UK equity managers Greenvale Capital and Boldhaven Management meanwhile, are also preparing to restrict inflows, underscoring a broader trend among high-performing managers seeking to preserve capacity.
Greenvale, led by former Citadel portfolio manager Bruce Emery, manages approximately $1.8bn and has historically limited new subscriptions. The fund returned close to 21% last year, with investments in residential solar and wind services among key contributors. Boldhaven is expected to close to new money for the first time, the people said.
The moves come as hedge funds attracted $116bn in net inflows in 2025, the highest level since 2007. Looking ahead, more than half of investors surveyed in Bank of America’s 2026 Hedge Fund Outlook plan to increase allocations, making hedge funds the most favoured asset class for the year on a net basis.
Goldman Sachs said in a recent report that strong performance and rapid asset growth are prompting more managers to cap flagship strategies, a dynamic that could limit deployment opportunities for allocators despite strong sentiment toward the sector.
Capacity management has traditionally been associated with the industry’s largest firms, but smaller and mid-sized managers are increasingly adopting similar measures as investor interest intensifies. Managers often restrict inflows to avoid scale becoming a drag on performance, particularly in volatile or less liquid strategies.
High-profile firms have taken similar steps. Rokos Capital Management previously indicated plans to cap assets at around $20bn, while Marshall Wace returned billions of dollars to investors earlier this year to prevent excessive growth.
