Hedge Funds
Ten biggest multistrategy hedge funds run about $2.2tn gross on $360bn of capital, PivotalPath finds
Research shows pod-shop leverage and overlapping US equity books, though it flags no imminent disruption.
HedgeWeekly Hedge Fund Desk ·
The ten largest multistrategy hedge fund firms held roughly $2.2 trillion of gross assets at the end of 2025, according to new research from PivotalPath. That figure includes borrowed money and is more than triple the 2018 level.
Set against combined net assets of $360 billion, the group's implied leverage is about six times investor capital. Six of the ten, which run multiple investment pods, operate at between eight and 14 times their net capital.
PivotalPath also found that the group's US equity holdings overlap more with one another than with those of other hedge funds, and that their returns have grown more correlated since 2019. A simultaneous shock to leveraged managers with concentrated positions could amplify selling and strain liquidity, particularly at funds with shorter redemption terms, the firm said, adding that the findings do not signal imminent disruption.
For allocators, the data frames a diligence question: diversification across several large platforms may be thinner than it looks if their books and returns increasingly move together. Hedgeweek noted that the larger platforms are leaning on multi-year investor lockups to manage that liquidity risk.