The rise of funds on Wall Street is partly explained by their recovery after the 2008 crisis.
The hedge funds are back in the sights of investors Wall Street. According to Hedge Fund Research, assets in the sector reached a new record of US$5 trilliondriven by both significant net inflows and strong returns.
Only in the third quarter of 2025, The funds received almost US$34,000 millionthe largest quarterly deposit since 2007, before the financial crisis that transformed the perception of risk. The average return of 5% during the quarter motivated many investors to reconsider investment vehicles they had put aside in favor of passive strategies.
The rise of hedge funds is partly explained by their recovery after the 2008 crisis. After years of falling assets and pressure on fees, the rise of ETFs and passive investing led to a widespread abandonment of active management.
The resurgence of hedge funds on Wall Street
It was not until 2013 that assets under management regained momentum, and since then growth has been constant, with the last few quarters standing out for the combination of good performance and new capital.
In a volatile bull market and uncertain US political context, hedge funds are once again capture the attention of institutional investorswhich seek to protect themselves against market risks.
usa wall street market
The largest funds, with assets exceeding $5 billion, continue to account for the majority of inflows, reinforcing the “winner takes all” dynamic.
Doubts about investors
However, renewal of interest raises questions about its scope. Hedge funds remain accessible only to accredited investors: people with incomes greater than $200,000 annually or a minimum net worth of $1 million.
Much of the capital comes from institutions such as pension funds, university endowments or sovereign entitiesreflecting that this trend primarily benefits those who already have substantial resources, while the majority of the American population faces economic limitations in transportation, child care, and food.
The return of hedge funds underscores both the renewed appetite for active strategies and the persistent economic gap in the countrywhere concentrated wealth continues to set the tone for sophisticated investment.
Source: Ambito
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