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In 2020, diversification into long only products remains the most popular - and obvious - choice for most hedge fund managers. Of the 63 top 100 firms to offer non-hedge fund products, at least 38 offered long only products.

Private equity was next, offered by at least 24. Only the most tenured, elite brands have remained (almost) hedge-only. For them, broad product diversification is a luxury. For everyone else, it is fast becoming a necessity.

The AUM threshold for the top ten increased by 20% at the start of 2020: The threshold for joining the top 100 hedge fund managers has been relatively steady for the past give years, remaining between $6bn and $7bn.

But there was a jump of 20% this year at the top ten threshold. If the big are getting bigger, it is true primarily of the industry's elite brands.

US managers in the top 100 tend to have the vast majority of AUM in hedge: The average top 100 hedge fund manager has around 15% of its AUM in non-hedge fund products.

That diversification is being driven by firms outside of North America, and notably in Europe, where the average top 100 firm has almost 25% of AUM in non-hedge fund products.

Asian and European managers in the top 100 are leaning into long only: The type of diversification also depends on region. In Europe, over half of top 100 managers offer long-only products.

Far fewer offer other alternatives. In North America, top 100 managers are much more likely to run a broader, more sophisticated shop, offering private market options.

Product diversification is a luxury for the pioneers, a necessity for the rest: The firms that pioneered hedge funds in the 1980s are now among the industry's largest and 'purest'. But they are unlikely to see their paths to success followed. Newer heavyweights have had to target broader product diversification, modest AUM, or have joined from other industries.