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Updates and insights from AFI’s research and data during the week ending 19 January 2025…
(Missed this year’s previous weekly round-ups? See week 1 and week 2).
Quality not quantity drives hedge fund launch market
What to make of the hedge fund launch market in 2024? Headline numbers have been mixed, with Preqin noting the lowest number of launches since 2000. But net new launch numbers are in positive territory for the second year running, according to HFR.
Ultimately, headline numbers are secondary in importance to the quality of the launches coming through. And 2024 saw an unusually high number of multi-billion-dollar launches, led by Jain Global, the sector’s biggest day-one raise ($5.3bn) since ExodusPoint in 2018.
Five billion-dollar plus day-one raises (three of them multi-billion) is very unusual compared to recent years. Get all the figures in AFI’s latest report. Not yet a subscriber? Read this free analysis.
ADIA buys Innocap stake as managed account interest risee
Abu Dhabi Investment Authority (ADIA) has bought a minority stake in Innocap Investment Management, and will use the managed account platform provider for its growing hedge fund and equity exposures.
In a move which crystallises the current industry interest in SMAs, ADIA’s stake in Innocap will rise to 10% in the years ahead. Mohammed Sghayer Khalaf Al Qubaisi, deputy director of the Alternative Investments Department at ADIA, will then join the Innocap board. Read more.
AFI research features in FT analysis
AFI’s Power25 ranking of hedge fund allocators featured in this FT analysis of Millennium and the wider world of multi-strategy. Read more.
Check AFI’s launch and Form D filing trackers – 62 so far in 2025
Power List outperformance
Mega funds managing more than $10bn outperformed smaller peers in 2024, as the largest hedge fund groups proved the value of scale.
New data from PivotalPath, the New York research firm, shows $10bn-plus firms posted average gains of 12.72%. Gains by the multi-strategy heavyweights, several of which manage more than $10bn in their flagships, helped drive strong performance in the largest tier. Read more
📡 Outside sources
Which story from the industry press had the biggest impact this week?
2024 was The Year That Hedge Funds Got Their Mojo Back according to this Wall Street Journal long read. "Stock pickers were able to shine in 2024, while esoteric markets such as Argentine debt and crypto bankruptcy claims also yielded opportunities." The piece explores performance drivers and the outlook ahead.