2023 expected to be a turning point for the $4 trillion industry View Blog | Paragon Alpha

2023 expected to be a turning point for the $4 trillion industry

By Matea Gucec

According to a Bloomberg analysis, the world's largest hedge fund companies are luring the lion's share of investor allocations and the best staff, with 2023 expected to be a turning point for the $4 trillion industry.

Although multi-strategy and macro funds, which have drawn the lion's share of investor capital, have posted gains and assisted in protecting clients from a painful stock market sell-off brought on by rising interest rates and a shift away from years of quantitative easing by central banks, the vast majority of hedge fund indices are down so far this year.

Citadel and Millennium Management, two multi-strategy giants, have both posted double-digit gains thus far this year, while macro specialists like Haidar Capital and Rokos Capital Management, two multi-strategy giants worth $5 billion and $15.5 billion respectively, are on track to post record annual gains.

The head of alternative assets at the Geneva-based private bank Reyl & Cie, Nicolas Roth, is quoted in the study as saying: "2022 is a tale of bifurcation on all dimensions. Big hedge funds have roared back in terms of performance, asset raising, and employment, whereas little guys are struggling.

The stage is set for the major players in the hedge fund sector to continue to show their mettle in 2023 as a result of rising interest rates and an overall weakening of the global economy.


Similar Articles:

24 Aug

By Matea Gucec

The war for talent in the Hedge Fund arena

Subscribe here: https://www.paragonalpha.com/report/the-best-in-hedge-fund-talent and receive exclusive resumes from our impressive roster of candidates. The modern hedge fund l...


07 Aug

By Matea Gucec

Bitcoin ready for bull market as it decouples from traditional assets

Pantera Capital CEO Dan Morehead shared his bullish outlook on Bitcoin (BTC), suggesting that the cryptocurrency has reached a turning point after weathering a lengthy bear market....


02 Aug

By Matea Gucec

Recruitment agencies as a key component in Hedge Fund talent management

The hedge fund industry is known for its intensity, competitiveness, and the high stakes involved. Success in this realm requires not just capital and innovative strategies but als...