Hedge funds are seeing their fastest inflows in a decade as investors seek returns amid the turmoil

Investors are pouring money into hedge funds at the fastest pace in a decade, betting that volatile markets will deliver outsized returns. Hedge funds had net inflows of about $25 billion in the three months to June, according to Hedge Fund Research, bringing total net inflows in the first half to more than $37 billion, the highest level since 2015. Global investor interest in hedge fund strategies appears to be picking up this year after a prolonged slump. Hedge funds have posted positive returns for 11 consecutive quarters, according to Citco, and their resilience amid market turmoil, such as the tariff shock in April, is seen as key to attracting new investors. Demand for large multi-strategy hedge funds such as Millennium Management and Citadel continues to be strong, and many of these firms have closed to new investors.