Illustration: Lydia Ortiz
The Big Take
An Army of Faceless Suits Is Taking Over the $4 Trillion Hedge Fund World
Almost all the new money in hedge funds is going to giant multi-strategy investments. The industry's fallen rock stars are following suit.
The most successful idea in hedge funds is now simply strength in numbers.
Investors are plowing money into funds that don’t rely on the next macro genius or star stockpicker, but instead offer an army of traders who invest in an array of strategies. These behemoths secured pretty much all of the new money in the hedge fund industry last year, cementing a tectonic shift that’s accelerated since the pandemic.