--- title: Global Hedge Funds Rise Above $4tr description: Institutions will increase allocations to funds demonstrating robustness through recent market cycles. image: https://articles.marketsmedia.com/hubfs/Imported_Blog_Media/iStock-1017183520-May-12-2022-09-28-02-58-AM.jpg --- ![websites-group](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/new-MMG-01.svg) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-new-marketsmedia-logo.svg)](https://www.marketsmedia.com/) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-menu-traders-redlogo.svg)](https://www.tradersmagazine.com/) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-menu-bestexe-logo.svg)](https://www.bestexecution.net/) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-menu-fidesk-logo.svg)](https://www.fixglobal.com/) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-fixglobal-new-logo.svg)](https://www.fixglobal.com/) - [*Facebook*](https://www.facebook.com/MarketsMedia/) - [*Twitter*](https://twitter.com/marketsmedia) - [*Linkedin*](https://www.linkedin.com/company/markets-media-llc) - [Newsletter](https://articles.marketsmedia.com/global-hedge-funds-rise-above-4tr#popup-newsletter) #### Want the latest news on securities markets -- FREE? Sign up to receive exclusive articles on topics including: - Equity market structure - Profiles of buy-side investment firms - The evolution of multi-asset-class trading - Regulation and its implications for markets - The search for liquidity in fixed income markets - The convergence of fintech and capital markets Select one or more newsletters you would like to receive: menu [![Markerts media](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/header%20logo.svg "Markerts media")](https://articles.marketsmedia.com/) - [Hedge Funds](https://articles.marketsmedia.com/tag/hedge-funds-2) - Hedge Funds - Global Hedge Funds Rise Above $4tr Search - [Home](https://articles.marketsmedia.com/) - [Trending](https://articles.marketsmedia.com/tag/trending) - [Featured](https://articles.marketsmedia.com/tag/daily-email-feature) - [Sectors](https://articles.marketsmedia.com/tag/sectors) - [From The Markets](https://articles.marketsmedia.com/tag/from-the-markets) - [AWARDS](https://articles.marketsmedia.com/tag/events) - [Newsletter](https://awards.marketsmedia.com/newsletter-sign-up) - [Newsletter](https://articles.marketsmedia.com/global-hedge-funds-rise-above-4tr#popup-newsletter) Hide search Search - NewsLetter ![](https://articles.marketsmedia.com/hubfs/Imported_Blog_Media/trading-up-occ-iex-select-board-members-citadel-lands-lieblich-573x379-Jul-07-2022-09-34-11-57-AM.jpg) [ON THE MOVE: Citi Hires Artie Ambrose;...](https://articles.marketsmedia.com/on-the-move-citi-hires-artie-ambrose-natalie-a-brown-to-mesirow) ![](https://articles.marketsmedia.com/hubfs/Imported_Blog_Media/Depositphotos_445735906_L.jpg) [Trading Adapts to ESG and Sustainable...](https://articles.marketsmedia.com/trading-adapts-to-esg-and-sustainable-investing) ![](https://articles.marketsmedia.com/hubfs/Imported_Blog_Media/iStock-917493152-Jul-07-2022-09-34-19-09-AM.jpg) [Focus on FX Execution Connectivity](https://articles.marketsmedia.com/focus-on-fx-execution-connectivity) ![](https://articles.marketsmedia.com/hubfs/Imported_Blog_Media/Depositphotos_333839538_L.jpg) [TRACE Turns 20](https://articles.marketsmedia.com/trace-turns-20) 11.08.2021 By Shanny Basar Hedge Funds # Global Hedge Funds Rise Above $4tr 11.08.2021 By Shanny Basar ![Global Hedge Funds Rise Above $4tr](https://articles.marketsmedia.com/hubfs/Imported_Blog_Media/iStock-1017183520-May-12-2022-09-28-02-58-AM.jpg) [Share](https://www.facebook.com/share.php?u=https://articles.marketsmedia.com/global-hedge-funds-rise-above-4tr) [Tweet](https://twitter.com/intent/tweet?text=US+ETFs+Have+Record+Net+Inflows&url=https://articles.marketsmedia.com/global-hedge-funds-rise-above-4tr) [Share](https://www.linkedin.com/cws/share?url=https://articles.marketsmedia.com/global-hedge-funds-rise-above-4tr) Hedge funds advanced in October, as short-term interest rates rose while the yield curve flattened, and global equity markets reversed prior month losses. The investable HFRI 500 Fund Weighted Composite Index advanced +1.7 percent in October, while the HFRI Fund Weighted Composite Index® (FWC) added +1.6 percent, according to data released today by HFR®, the established global leader in the indexation, analysis and research of the global hedge fund industry. With the October gain, total capital invested in the global hedge fund industry rose to an estimated $4.04 trillion, surpassing a historical milestone of growth and expansion. The performance dispersion of the underlying index constituents narrowed slightly in October, as the top decile of the HFRI gained an average of +8.0 percent, while the bottom decile declined by an average of -4.8 percent for the month, representing a top-bottom dispersion of 12.8 percent in October, compared to a top-bottom dispersion of 13.3 percent in September. In the trailing 12 months ending October 2021, the top decile of the HFRI soared by an average of +85.1 percent, while the bottom decile declined by an average of -7.0 percent. Equity Hedge funds, which invest long and short across specialized sub-strategies, led all main strategy performance in October, as global equities posted strong gains, reversing prior month losses. The investable HFRI 500 Equity Hedge Index gained +2.2 percent for the month, increasing its YTD return to +11.9 percent, while the HFRI Equity Hedge (Total) Index advanced +2.1 percent on strong contributions from Quantitative Directional, Technology, Energy, and Fundamental Growth strategies. The HFRI EH: Quantitative Directional Index jumped +9.2 percent in October, reversing the prior month declines, while the HFRI EH: Fundamental Growth Index added +2.2 percent. Led by Activist and Special Situations exposures, Event-Driven strategies, which often focus on out-of-favor, deep value equity exposures and speculation on M&A situations, also posted strong gains in October. The investable HFRI 500 Event-Driven Index advanced +1.9 percent, while the HFRI Event-Driven (Total) Index added +1.3 percent for the month. ED sub-strategy gains were led by the HFRI ED: Activist Index which gained +3.3 percent, while the HFRI ED: Special Situations Index added +2.5 percent. Uncorrelated Macro strategies also advanced in October, as short terms rates increased while longer terms rates fell, and energy prices extended recent gains. The investable HFRI 500 Macro Index returned +1.4 percent, while the HFRI Macro (Total) Index added +1.3 percent. Macro sub-strategy performance was led by quantitative, trend-following CTA strategies with the HFRI Macro: Systematic Diversified Index gaining +2.5 percent, while the HFRI Macro: Active Trading Index added +1.6 percent. Fixed income-based, interest rate-sensitive strategies also gained for the month, as the yield curve flattened and as investors positioned for the near-term tapering on bond purchases by US Federal Reserve. The investable HFRI 500 Relative Value Index also advanced +0.8 percent for the month, while the HFRI Relative Value (Total) Index gained +0.7 percent. Sub-strategy performance was led by the HFRI RV: Yield Alternative Index, which jumped +4.05 percent, while the HFRI 500 RV: Convertible Arbitrage Index gained +2.5 percent. Risk Premia strategies again posted mixed performance in October as gains in Multi-Asset exposures were offset by declines in Rates. The HFR BSRP Multi-Asset Index advanced +2.32 percent for the month, while the HFR BSRP Rates Index fell –6.1 percent. The HFRX Global Hedge Fund Index gained +0.9 percent in October, led by the HFRX Equity Hedge Index, which returned +2.2 percent. The HFR Cryptocurrency Index surged +21.7 percent for the month. The HFRI Diversity Index advanced +1.1 percent in October, while the HFRI Women Index posted a narrow gain of +0.14 percent. “The hedge fund industry surpassed a historic milestone in October, as performance-based gains across all strategies drove total industry capital to exceed $4 trillion for the first time in history. The milestone also marks a sharp reversal from April 2020, when industry capital fell below $3 trillion at the beginning of the global pandemic. Industry growth has been driven by strong performance which extends widely across strategies – including high and low beta, equity, fixed income, commodity and currency strategies, and emerging and established managers.”, stated Kenneth J. Heinz, President of HFR. “Hedge funds have successfully navigated multiple market cycles over the past 18 months, beginning with equity market capitulation in March 2020, navigating intense equity and commodity volatility, and most recently, rising interest rates and inflationary pressures. Global financial institutions are likely to increase allocations to funds which have demonstrated their strategy’s robustness through recent market cycles, with these set to lead industry growth into 2022.” HFR Indices are ESMA registered. [HFR Global Hedge Fund Industry Report - Third Quarter 2021](https://mondovisione.com/_assets/files/HFR-Media-Reference-Guide-2021.11.05.pdf) Source: HFR [Share](https://www.facebook.com/share.php?u=https://articles.marketsmedia.com/global-hedge-funds-rise-above-4tr) [Tweet](https://twitter.com/intent/tweet?text=US+ETFs+Have+Record+Net+Inflows&url=https://articles.marketsmedia.com/global-hedge-funds-rise-above-4tr) [Share](https://www.linkedin.com/cws/share?url=https://articles.marketsmedia.com/global-hedge-funds-rise-above-4tr) ![email](https://articles.marketsmedia.com/hubfs/Markets%20Media/email.svg) ### NEWSLETTER SIGN UP And receive exclusive articles on securities markets ### Related articles 1. [![](https://articles.marketsmedia.com/hs-fs/hubfs/Imported_Blog_Media/trading-across-the-pond-Jul-07-2022-09-33-17-07-AM.png?width=376&height=250&name=trading-across-the-pond-Jul-07-2022-09-33-17-07-AM.png)](https://articles.marketsmedia.com/eu-achieves-electronic-trading-of-standardized-otc-derivatives) Regulation ## [EU Achieves Electronic Trading of Standard OTC Derivatives](https://articles.marketsmedia.com/eu-achieves-electronic-trading-of-standardized-otc-derivatives) ISDA warns on proposed changes to post-trade deferrals regime. 07.07.2022 By Shanny Basar 2. [![](https://articles.marketsmedia.com/hs-fs/hubfs/Imported_Blog_Media/iStock-522304914-Jul-07-2022-09-33-41-28-AM.jpg?width=376&height=250&name=iStock-522304914-Jul-07-2022-09-33-41-28-AM.jpg)](https://articles.marketsmedia.com/six-digital-exchange-collaborates-with-fireblocks) Fintech ## [SIX Digital Exchange Collaborates with Fireblocks](https://articles.marketsmedia.com/six-digital-exchange-collaborates-with-fireblocks) The partnership will focus on delivering an institutional custody solution for digital assets. 07.07.2022 By Shanny Basar 3. [![](https://articles.marketsmedia.com/hs-fs/hubfs/Imported_Blog_Media/Depositphotos_103566932_L-2.jpg?width=376&height=250&name=Depositphotos_103566932_L-2.jpg)](https://articles.marketsmedia.com/iosco-publishes-crypto-asset-roadmap) Regulators ## [IOSCO Publishes Crypto-Asset Roadmap](https://articles.marketsmedia.com/iosco-publishes-crypto-asset-roadmap) The IOSCO Fintech Task Force will collaborate closely with other international bodies. 07.07.2022 By Shanny Basar [![MarketsMedia](https://articles.marketsmedia.com/hubfs/MarketsMedia.svg "MarketsMedia")](http://marketsmedia.com) - [About us](https://www.marketsmedia.com/about-us) - [Careers](https://www.marketsmediagroup.com/careers) - [Contact](https://www.marketsmediagroup.com/contact) - [Advertise](https://www.marketsmediagroup.com/advertise) - [Newsletter](https://awards.marketsmedia.com/newsletter-sign-up) - [Corporate Site](https://marketsmediagroup.com) - © 2026 Markets Media Holdings LLC - - Terms & Conditions - Privacy Policy {{ standard\_footer\_includes }}