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In the week ending November 13th 2020, Preqin said that it expects hedge funds to hold onto their position as the second-largest alternative asset class in 2025, despite relatively weak growth in assets under management (AUM) due to continued outflows. AUM growth will be the lowest of all asset classes at a CAGR of 3.6% per year. Preqin forecasts AUM to reach $4.28tn in 2025, up 19.6% from $3.58tn at the end of 2020.

Meanwhile, many research reports pointed out that the hedge fund industry posted loss in October. eVestment said that hedge funds continued to face a difficult market environment in October as for a second consecutive month the majority of funds saw performance declines - according to the report, the average return in the hedge fund industry came in at -0.21% in October; The Eurekahedge Hedge Fund Index was down 0.16% in October 2020, but outperforming the global equity market as represented by the MSCI ACWI (Local), which lost 2.29% over the same period, while the Barclay Hedge Fund Index also posted a second consecutive monthly loss, down 0.11% for the month.

In new launches, global alternative investment firm Värde Partners closed its second fund targeting distressed credit opportunities with $1.6 billion in commitments, exceeding a $1 billion target, for assets potentially stressed or mispriced as a result of the economic fallout of the coronavirus outbre......................

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