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.
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