Stock-picking, multi-manager hedge funds attract more capital from investors in 2026, BofA says

Hedge funds are witnessing an unexpected surge in capital, breaking a three-year trend of stagnation. Investors are gravitating towards hedge funds as their asset class of choice for 2026, driven by impressive performance attributed to the artificial intelligence sector. Additionally, both pension funds and private banks are preparing to allocate more resources into these funds this year, especially in equity and multi-manager strategies.

Stock-picking, multi-manager hedge funds attract more capital from investors in 2026, BofA says

Stock-picking, multi-manager hedge funds attract more capital from investors in 2026, BofA says

What Happened

Hedge funds are witnessing an unexpected surge in capital, breaking a three-year trend of stagnation. Investors are gravitating towards hedge funds as their asset class of choice for 2026, driven by impressive performance attributed to the artificial intelligence sector. Additionally, both pension funds and private banks are preparing to allocate more resources into these funds this year, especially in equity and multi-manager strategies.

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Original reporting provided by Economic Times Markets.

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