Portfolio enrichment: How SMAs and alpha capture are changing the hedge fund game



2025 could prove a historic turning point for the global hedge fund industry. Sector-wide returns were compelling, by some metrics the best since 2009, and the liquid diversification offered by hedge funds has rarely looked so attractive.

Returns were boosted at many firms by “portfolio enrichment” — a term AFI has coined to encapsulate the external allocations, alpha capture programs and other growing ways in which hedge funds enhance their offerings.

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