Private banks and wealth managers' demand for hedge fund exposure grows

"Data from BNP Paribas shows a healthy increase of over 10% in hedge fund holdings by private banks and wealth managers during the first half of this year, which signalled a positive prospect for the remainder of the year. Global allocator surveys supported this, such as Barclays', which forecasted hedge funds as the asset class with the most significant incremental allocation increases in 2025 across private markets and long-only."

"Performances across key hedge fund strategies have been a notable catalyst. Quant equity, event-driven, and quant multi-strategy strategies delivered strong returns during the first half of the year, adapting well to evolving market conditions and driving positive sentiment among wealth distributors. HFR's September data supported this trend, positioning macro and trend-following strategies as leaders heading into Q4. These tactical trading approaches provide essential diversification for private bank clients seeking to mitigate portfolio risks."

BNP Paribas data show private banks and wealth managers increased hedge fund holdings by over 10% in the first half of 2025, indicating stronger demand into the year. Global allocator surveys, including Barclays', forecast hedge funds as the asset class with the largest incremental allocations in 2025 across private markets and long-only. Strong performances from quant equity, event-driven, and quant multi-strategy drove positive distributor sentiment. HFR's September data position macro and trend-following strategies as leaders into Q4, offering diversification and risk mitigation. Wealth channels have reallocated capital to hedge funds, with operational sophistication enabling scaled allocations and risk management while accessing performance upside.

Read at London Business News | Londonlovesbusiness.com