According to a Bank of America internal report, hedge fund managers have successfully raised more capital than planned in 2026 for the first time in three years. Bolstered by the artificial intelligence boom, the industry achieved its strongest first-half performance since 2010, gaining 5.5% through July. Pension funds, fund-of-funds, and private banks are driving this demand, focusing heavily on equity and multi-manager platforms across sectors like technology, healthcare, and energy. Notably, 60% of limited partners are directing capital toward new relationships with existing hedge funds. Meanwhile, investors remain cautious regarding private credit funds due to valuation concerns and artificial intelligence disruption, whereas Wall Street prime brokerages are profiting from heavy lending to top-performing multi-strategy hedge funds.

According to a Bank of America internal report, hedge fund managers have successfully raised more capital than planned in 2026 for the first time in three years. Bolstered by the artificial intelligence boom, the industry achieved its strongest first-half performance since 2010, gaining 5.5% through July. Pension funds, fund-of-funds, and private banks are driving this demand, focusing heavily on equity and multi-manager platforms across sectors like technology, healthcare, and energy. Notably, 60% of limited partners are directing capital toward new relationships with existing hedge funds. Meanwhile, investors remain cautious regarding private credit funds due to valuation concerns and artificial intelligence disruption, whereas Wall Street prime brokerages are profiting from heavy lending to top-performing multi-strategy hedge funds.