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Wall Street News

Hedge fund assets top $3 trillion for the first time

January 24, 2017

For all the talk that 2016 was a hellish year for hedge funds, the industry ended the year in fine shape. On the strength of the Donald Trump rally, industry assets under management topped $3 trillion in for the first time. Fact is, total hedge fund industry capital rose for the 3rd consecutive quarter, more than offsetting the challenge of continued investor withdrawals.

 

While investors pulled $18.7 billion of capital from hedge funds during Q4 (and $70.1 billion for all of 2016), Q4 hedge fund assets increased by $46.8 billion to $3.02 trillion due to performance. The industry returned 5.5% in 2016, its best return since 2013. The S&P 500 rose 3% in 2016's Q4.