Agecroft Partners’ 16th annual predictions for the hedge fund industry in 2025 highlight key trends shaped by the incoming Trump Administration. Increased market volatility is expected to create opportunities for hedge funds but may pressure equity valuations. The blockchain and cryptocurrency sector is set for growth, with more funds dedicated to digital assets. Value stocks might outperform as U.S. trade policies favor competitiveness. ESG investing may decline in the U.S., while demand for smaller multi-strategy funds rises. Additional trends include a surge in reinsurance managers, strategies with excess collateral, and the importance of internal marketing teams in securing investments.

Read the full article here