Hedge funds are witnessing a resurgence as institutional investors, particularly pension funds and sovereign wealth vehicles, increase their allocations significantly. This trend is driven by a demand for better risk-adjusted returns and diversification. Despite a muted 2024, demand has surged in 2025, especially for multi-strategy and macro funds that can manage geopolitical risks. Luxembourg maintains its vital position in the hedge fund industry with a substantial amount of regulated assets and increasing ESG investment, supported by the roll-out of ELTIF 2.0, which broadens access to private markets.
Hedge funds are seeing renewed momentum as institutional investors seek diversification and better risk-adjusted returns, with significant allocations expected to increase by 10% or more.
Pension funds, insurers, and sovereign wealth funds are driving a notable increase in hedge fund allocations, indicating a strong confidence in the industry's potential for improved returns.
Collection
[
|
...
]