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Matthias Knab, Opalesque for New Managers:

Total global hedge fund industry capital surged to a record $5.6 trillion in the second quarter of 2026, rising for the 15th consecutive quarter, according to the latest HFR Global Hedge Fund Industry Report released by HFR.

The $409.3 billion increase was the largest quarterly gain the industry has ever recorded, comfortably surpassing the previous high of $290.4 billion set in the fourth quarter of 2020. Two components drove it: record performance-based gains of $364 billion, plus estimated net asset inflows of $45.2 billion, which exceeded the inflow levels of each of the two preceding quarters.

HFR noted that managers spent the quarter navigating geopolitical uncertainty tied to the Iran military conflict, but that these pressures were outweighed by risk-on momentum around AI and technology investment together with a continuing record IPO cycle.

Kenneth J. Heinz, President of HFR, described the current backdrop as "unequivocally the strongest for hedge fund capital growth since industry inception", pointing to both the positive drivers of growth and the shifting geopolitical and macroeconomic risks running alongside them. He said the industry has demonstrated it can navigate see-sawing conditions and the dislocations those forces produce.

Inflows at the fastest pace since 2007......................

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