LP risk manoeuvres set to drive hedge fund growth
With Intelligence
The data intelligence behind hedge funds, private markets and public funds.
Since proving their risk mitigation qualities during 2022’s big equity and fixed-income drawdowns, we have been monitoring a slow but steady improvement in investor sentiment towards hedge funds.?
This looks set to continue for 2025, particularly given the number of large US pensions launching or building out sleeves for risk mitigation strategies (RMS) to be deployed in the coming years. Certain influential LPs, such as CalPERS and Ohio PERS, are plotting significant moves back into hedge funds through a RMS bucket after high-profile past exits. Billions of dollars of new capital will be allocated from larger pensions we are tracking to strategies such as relative value, trend-following CTAs, macro and risk premia.?
More generally, we see a positive outlook for a range of hedge fund strategies (given various geopolitical dynamics), which are likely to attract more opportunistic LPs to invest in hedge funds across their portfolios to play themes on the long and short side.?
Read more on the Hedge Fund Outlook for 2025 in our report here.?
With Intelligence makes it easy for GPs and LPs to spot trends and make informed decisions. We track fund launches, mandate wins, and people moves and produce regular reports across alternative assets, ensuring you have all the information you need.
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