Investor interest: Allocator plans for hedge funds and beyond in 2025

This data-driven Hedgeweek report, sponsored by Marex, explores investor sentiment towards hedge funds and other alternative investment strategies as we move into 2025. Which strategies are attracting the most interest and what are the key driving forces for LPs as they weigh up their asset allocation decisions? Judging by Hedgeweek’s Q4 survey, the outlook ahead for hedge funds matches, in many ways, that of 12 months ago, when a more conducive market environment and changing investor preferences were expected to precede better performance and a rush of inflows. Strong performance followed, but inflows did not live up to the billing. Will 2025 be different?

Hedge fund appetite accelerates: More than half of investors surveyed by Hedgeweek plan to increase their hedge fund commitments in 2025. That marks a twofold increase on last year, with 54% now planning a higher exposure.
Quant is top priority: Quant and systematic strategies are the top areas of interest for LPs looking to increase their allocations into hedge funds, with 75% planning to up their exposure in 2025.
Don’t write off private credit: There has been growing talk of a bubble in private credit but many investors still want to invest more. Direct lending, which constitutes the bulk of the private credit market, continues to be the key driver of growth.
ESG becomes less relevant: Three-fifths of investors are asking managers about AI, in line with last year. There was, however, a big decline in terms of ESG.

Work/Business Email*

First Name*

Last Name*

Company Name*

Job Title*

Country*

Firm Type*

Hedge Fund Manager

Private Markets Manager

Allocator

Hedge Funds Service Provider

Private Markets Service Provider

Other

Would you like to register for the webinar?*

Would you like to be automatically registered for the monthly Hedgeweek Insight Report Series? Please note that this will add you to the recipients list for the monthly report only.*

Would you like to subscribe to the Hedgeweek Newsletter?*

I have read and understood the Terms and Conditions*

Yes

I have read and understood the Privacy Policy*

Yes