As we move through March 2025, the hedge fund industry continues to see strong momentum in new fund launches and strategic expansions. With a resilient market environment and growing investor interest in alternative assets, several high-profile funds have emerged.
Hedge fund launches in 2025
1. Polymer Capital Management’s Japan-Focused Funds
Hong Kong-based Polymer Capital Management has taken a significant step into the Japanese market with the launch of two dedicated funds:
- A Japan-focused equity long/short fund, targeting a $500 million raise with a team of 30 PMs.
- A long-only Japan equity fund, led by former J.P. Morgan Asset Management veteran Daisuke Nakayama.
This move highlights Japan’s rising appeal among global investors, with improving corporate governance and valuation opportunities drawing hedge fund capital.
2. Dovehouse Capital – A New Abu Dhabi Multi-Strategy Fund
Former UBS banker Martin Rasmussen and entrepreneur Claus Rosenberg Gotthard are launching Dovehouse Capital, a multi-strategy hedge fund based in Abu Dhabi.
- The fund will start trading in Q2 2025, targeting a $150 million AUM by Q3.
- Investment focus: diversified asset classes, including equities and commodities.
Abu Dhabi has positioned itself as a rising financial hub for alternative investments, attracting hedge fund talent and capital away from traditional centers like London and New York.
3. Palinuro Capital’s Global Macro Fund
Founded by ex-bank strategist Alfonso Peccatiello, Palinuro Capital is set to launch its global macro hedge fund in Amsterdam.
- The fund starts in January 2025 with $100 million in commitments.
- Investment approach: trading bonds, currencies, and commodities, with a focus on volatility and macroeconomic shifts.
Given the uncertainty in global interest rates and inflation, macro funds remain in high demand, and Palinuro Capital is well-positioned to capture market dislocations.
4. MGX Fund Management’s AI-Driven Expansion
Launched in 2024, MGX Fund Management, an Abu Dhabi-backed AI investment firm, continues to scale rapidly in 2025:
- Target $100 billion in assets under management.
- Collaborations with BlackRock, Microsoft, OpenAI, and Oracle on AI infrastructure investments.
This fund underscores a key 2025 trend: AI-driven hedge fund strategies, leveraging machine learning for investment insights and risk management.
Industry Outlook for 2025
According to Barclays’ 2025 Hedge Fund Outlook, hedge funds posted a 10.1% return in 2024, their second-best year in a decade. Investor sentiment remains bullish, with:
- 30% of allocators increasing their hedge fund exposure in 2025.
- High interest in statistical arbitrage, multi-manager strategies, and global macro funds.
- Sustained allocations to equity long/short and market-neutral strategies.
The hedge fund industry’s evolution in 2025 reflects a shift towards AI, global macro, and emerging markets. With new launches gaining momentum and institutional capital flowing in, it’s shaping up to be a transformative year for alternative investments.
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