Hedge funds see fastest inflow of funds in a decade as investors seek returns amid turmoil

Jin10 Data reported on August 20 that investors are pouring funds into hedge funds at the fastest pace in a decade, betting that the turbulent market will yield excess returns. According to Hedge Fund Research, net inflows to hedge funds reached about $25 billion in the three months ending in June, bringing total net inflows for the first half of the year to over $37 billion, the highest level since 2015. After a long period of stagnation, global investor interest in hedge fund strategies appears to be rising this year. According to Citco data, hedge funds have achieved positive returns for 11 consecutive quarters, and their resilience during market turmoil (such as the tariff shock in April) is seen as key to attracting new investors. Demand remains strong for large multi-strategy hedge funds like Millennium Management and Citadel, with many such firms having closed their doors to new investors.