The hedge fund industry ended 2024 with $4.51 trillion in assets under management, a 9.75 percent increase from the previous year, according to Hedge Fund Research.
Total assets increased by $401.4 billion last year, the highest amount since 2021.
The growth in hedge fund assets underscores the market influence of this less regulated and leveraged industry, which uses a vast array of trading strategies and assets, reported Reuters.
The HFRI Fund Weighted Composite Index posted a 9.83 percent gain in 2024, according to Investment News, which reported that is significantly below the S&P 500's 23.3 percent return, yet reflective of hedge funds' ability to generate alpha through diversification and risk management in a challenging market. But research by Bank of