Hedge Fund Assets Reach $4.98T After Q3

Global hedge fund assets reached $4.98 trillion at the end of Q3 2025, driven by the largest quarterly inflow since 2007 of about $33.7–$34 billion, HFR reported. Industry capital rose roughly $238.4 billion in the quarter, fueled by investor allocations and positive trading returns — HFR’s Fund Weighted Composite Index gained 5.4% in Q3 and is up year-to-date. The number of hedge funds climbed to 8,464, and year-to-date client inflows totaled about $71 billion through Q3. Performance and flows were concentrated in equity hedge, event-driven and relative value strategies, while macro strategies rebounded and the HFR Cryptocurrency Index surged roughly 20.3% in Q3. Capital remained concentrated at the largest managers (firms with >$5bn AUM), and HFR’s Kenneth Heinz attributed the growth to accelerating M&A, AI/tech and crypto exposure plus expectations of lower interest rates, saying the industry is on track to exceed $5 trillion by year-end.