The global hedge fund industry concluded the first quarter with a record $4.3 trillion in assets, according to data provider HFR.
Hedge funds are investment vehicles where private investors pool their money, which is then managed by professional fund managers. These managers employ various strategies, such as leveraging and trading non-traditional assets, to generate returns that surpass the average.
During the first quarter, the industry experienced an increase of $190 billion in assets, marking the sixth consecutive quarter of growth. The primary catalyst for this asset growth was the performance of hedge funds, which saw a rise of 4.52 percent, as indicated by the HFRI Fund Weighted Composite index.
Furthermore, the industry attracted $16.6 billion in net new investments during the quarter, with a particular focus on equity and event-driven hedge fund strategies.
HFR stated in a release that portfolio managers capitalized on a market environment characterized by unprecedented geopolitical risks and macroeconomic uncertainties throughout the first quarter.
For more news on banking & finance, click here.
