Hedge Funds

The HedgeWeekly Fund Tracker: Record $5.64tn in assets as money crowds into the biggest managers

Industry capital hit a new high in the third quarter, a Sequoia alumnus raised $1bn-plus, a Chinese quant reopened to foreign money and Two Sigma's governance churn continued. Every item sourced.

HedgeWeekly Hedge Fund Desk · 2026-10-23

Hedge fund industry capital held at a record $5.64 trillion at the end of September, HFR said this week, as $34.5 billion of net inflows more than covered $27.4 billion of third-quarter trading losses. The money is pooling at the top: firms running more than $5 billion took about $36.6 billion of the quarter's inflows while mid-sized firms saw a small outflow. Elsewhere, a former Sequoia stock picker raised more than $1 billion for a new tech fund, a Chinese quant reopened to foreign capital, and Two Sigma lost another governance figure. No Gulf fund items met our sourcing bar this week.

Performance. Two Sigma (New York): its Absolute Return Enhanced fund was up 16% through September, according to Bloomberg figures cited by Hedgeweek, with the firm saying 2026 is on track to be one of its strongest years. (Hedgeweek) HFR industry indices (US): macro funds made 4.3% in the third quarter, with systematic/CTA strategies up 5.7% for the quarter and 15.7% for the year, while equity hedge lost 2.1% and event-driven 1.9%. (Opalesque, citing HFR) Arini Capital Management (London): the credit manager's roughly $7 billion flagship master fund was down an estimated 6.91% in October to the end of last week, taking 2026 losses beyond 21% after a 15.7% fall over the first nine months. (Hedgeweek, citing the Financial Times) Quantedge Global Fund (Asia): up 49.17% for 2026, including 4.21% in September, on revised figures in HSBC's weekly hedge fund table. (Hedge Fund Alpha) Telligent Greater China Fund (Asia): up 46.54% year to date after an 18.44% drop in July, 11.87% in August and 3.04% in September. (Hedge Fund Alpha)

Launches and closures. Augnition Global Investors (Menlo Park): Jeff Wang, who ran Sequoia Capital's global equities business, has raised more than $1 billion for a technology hedge fund; a September 30 filing showed at least $570 million at the start, about 45% of it internal money. (Hedgeweek; Briefs Finance; PrivateFundData) Two Sigma Real Estate (New York): the unit has halted fundraising and new investments after raising less than half of a roughly $2 billion target, and its chief investment officer Rich Gomel is among the departing partners, Bloomberg reported. (HedgeCo.Net, citing Bloomberg)

Money moves. Lingjun Investment (Beijing/Hong Kong): the quant manager's Hong Kong arm has drawn at least $300 million from a US institutional investor and Southeast Asian clients, and is in advanced talks over a $150 million allocation from a Southeast Asian sovereign wealth fund. (Reuters via Investing.com) Norges Bank Investment Management (Oslo): Norway's wealth fund lost 278 billion kroner ($29.7 billion) in the third quarter as its bond book fell 3.5% and equities returned 0.5%. (Hedgeweek) J.P. Morgan Asset Management (New York): its 2027 long-term assumptions raise the expected annual return on diversified hedge funds to 6.7% from 5.3%, a 140 basis-point upgrade. (J.P. Morgan Asset Management) SS&C GlobeOp (US): forward redemption notices fell to 1.62% of assets for October from 2.02% in September, below the five-year average of 2.06%. (Business Wire) Barclays (London): the bank shifted balance-sheet capacity from macro rates traders to prime financing through an internal auction after hitting its lending limit for Asian hedge fund clients over the summer, Bloomberg reported. (Swissinfo, citing Bloomberg)

People. Two Sigma (New York): Seth Platt, co-founder David Siegel's representative on the $85 billion firm's two-person management committee, will leave once a successor is named and stay on as CIO and COO of Siegel's family office. (Hedgeweek, citing Bloomberg) Walleye Capital (US): the $17 billion multi-strategy firm has hired Jordan Tanner, Balyasny's chief equities strategist, and Anna Dev from Millennium for its equity long-short unit, both due to start in mid-2027, while equities COO Matt Giannini returns to Citadel. (Hedgeweek) Schonfeld Strategic Advisors (London): newly filed UK accounts show business development staff rose to 20 at the end of 2025 from six in 2022, with a net 25 portfolio managers added since 2022. (Hedgeweek, citing eFinancialCareers)

Rules. SEC and France's AMF (Washington/Paris): the two regulators signed a supervisory memorandum of understanding on October 20 covering investment advisers and investment service providers active in both countries, and the SEC said it will process new and pending adviser registrations from AMF-supervised asset managers under the arrangement. (SEC) Securities and Futures Commission (Hong Kong): on October 16 the SFC welcomed HKEX's proposal to move Hong Kong's stock market to T+1 settlement, a change that would shorten funding and settlement windows for fund trading. (SFC)

The number of the week: $5.64 trillion. That is global hedge fund industry capital at the end of the third quarter, a record and the 16th straight quarterly rise, according to HFR. Year to date, assets are up $480 billion, including $124.1 billion of net inflows, and HFR says more than 90% of new money this year has gone to the largest managers. (Opalesque and Hedgeweek, citing HFR)

What it means. For allocators, the week's data point one way: capital is still arriving, redemption notices are below average, and a major asset manager has raised its long-run hedge fund return assumption, yet the inflows are concentrated in the biggest firms and in macro and relative value rather than equity books. For managers, the gap between Augnition's billion-dollar start and the difficulty of mid-sized fundraising shows how much a launch now depends on pedigree and internal capital, while Arini's drawdown and the Two Sigma governance churn are reminders that due diligence has to cover both drawdown risk and firm stability. Prime brokers rationing balance sheet, as at Barclays, adds financing terms to the list of things managers cannot take for granted.

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The HedgeWeekly Fund Tracker: Record $5.64tn in assets as money crowds into the biggest managers

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