Hedge funds are beginning the new decade with more than $3.3 trillion in their coffers — a record high, thanks to the strongest performance in 10 years, according to new data.
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“The hedge fund industry concluded a historic decade of growth, which began in the aftermath of the financial crisis and saw total capital double in size,” Kenneth J. Heinz, president of industry-tracking firm Hedge Fund Research, said in a statement on Tuesday.
The new total represents an increase of $80 billion in the last three months of the year alone, HFR reported. The previous record — $3.24 trillion — was notched in mid-2019.
The record-setting year occurred despite net outflows of $13.6 billion in the fourth quarter, according to HFR.
Last year, the top 20 best-performing hedge fund managers, who oversee less than a fifth of the industry’s assets, made a staggering $59.3 billion for investors, their biggest annual gains in at least a decade, according to the Financial Times. Hedge funds were boosted by a strong tailwind in the stock and bond markets.
Although Ray Dalio’s Bridgewater Associates, the largest hedge fund in the world, suffered its first annual loss since 2000, it retained its top spot in the all-time ranking with $58.5 billion of gains since it launched in 1975, the Times reported.