Large multistrategy hedge funds are managing substantially more capital, using leverage and increasingly investing in the same stocks, according to a new report from PivotalPath. The concentration could amplify market disruption if a shock forces them to unwind positions at the same time.
The research firm did not identify the 10 funds covered in its analysis. Together, they oversaw $2.2 trillion at the end of 2025, including borrowed money.
That figure was more than three times the amount recorded in 2018, highlighting the rapid expansion of the largest multistrategy firms and the growing scale of their market exposure.
Sources: Bloomberg Markets.