H-Squared

Man Group reported a 14% increase in assets under management (AUM) to a record $193.3 billion as of June 30, 2025, driven by $17.6 billion in net inflows, which were 11.5% above industry levels. The strong inflows were largely attributed to long-only strategies that benefited from rising asset prices. Over the past year, net inflows surged 1,855%, signaling strong investor demand. CEO Robyn Grew noted the challenges of a volatile first half, especially for systematic hedge funds, which were down about 10% through May. Despite this, Grew expressed confidence in their long-term value. By contrast, broader hedge fund industry returns averaged 11% in H1 2025. https://lnkd.in/gREgc2iN

We are working with a leading hedge fund to find someone to join the external communications team. This role will sit across external comms, marketing communications, media, design, and thought leadership, working heavily on employer branding and translating technical topics into easily digestible copy. On the employer branding side, you will work on recruiting ajecent materials, social media such as LinkedIn, videos, and overall employer branding. Ideally, you will be in a systematic fund or big tech. For more information, please reach out to me or one of the H-Squared team.

I have spent the last few weeks speaking with a lot of folks in the Consultant Relations space, and a clear trend is evident. Alternatives firms are building out their teams. Here are some insights from the recent chats I've had. Most of the larger players have had theirs built for a while now, but it seems like a lot of the industry has been bolting this function onto direct capital raising, meaning it's not getting the love it needs to really drive meaningful flows. Patience is key, consultant relationships often take years to develop, and success often comes in multi-year cycles. Consultant types, tier 1, 2, 3, etc, OCIOs, alts specialists, globals, what are their coverage models, and what are you aiming for? If you are looking to hire a global lead, or even just North America, you may need junior support, as unless you are a small boutique, it's rarely a one person job. The hiring market is hot. From global leads to junior support, it's competitive across the board. If you are looking to build out your consultant relations function, new or existing, we would be happy to chat further about what we have been seeing in the market.

Stonepeak, a $73bn US based infrastructure asset manager, is accelerating its expansion into private wealth, having raised over $400m for its US focused Stonepeak Plus Infrastructure fund. Though it only launched its dedicated wealth platform in December, the firm already has a 30 person team in place and is actively hiring, including recent additions from Wellington Management. The firm is positioning itself to meet rising demand from wealth investors for infrastructure exposure, with Citywire reporting 38% of selectors at a recent forum favouring the asset class. Stonepeak invests across energy, transport, logistics, and digital infrastructure, with a focus on long-term mega trends like AI, energy security, and decarbonisation. Co-president Luke Taylor emphasized the sector’s resilience through inflationary periods and macro volatility, highlighting growing interest in infrastructure’s downside protection and diversification benefits. The firm is also preparing a European and Asian version of its strategy, Stonepeak Plus Infrastructure Lux registered in Luxembourg and launching soon. Stonepeak’s partnership with Blue Owl, which took a minority stake in 2023, has helped fund seed investments for new wealth-focused products. While digital infrastructure, especially data centers, is a key area, Taylor warns about valuation risks amid AI-driven hype. The firm also sees strong opportunities in U.S. infrastructure, driven by innovation, demographic trends, and decarbonisation efforts beyond renewables. https://lnkd.in/gydVe8bm

Hedge fund AUM hit a record $4.74tn in Q2 2025, the seventh straight quarterly high driven by the biggest inflows since 2014. Institutions added nearly $25bn as managers took advantage of a more optimistic macro outlook, legislative progress in the US, and easing geopolitical risk. H1 inflows reached $37.3bn, the strongest start to a year since 2015, with solid performance across strategies. Equity Hedge and Event-Driven led Q2 returns, while Macro Discretionary and LatAm-focused funds topped YTD performance. Capital flowed mostly to the biggest players: managers with $5bn+ in AUM took in over 90% of new capital in Q2. HFR’s Kenneth Heinz summed it up: investors are backing funds that can adapt and perform through disruption. https://lnkd.in/g3UQd8jN

Man Group is acquiring Bardin Hill Investment Partners LP, a New York-based US private credit manager with $3bn in AUM. Bardin Hill specializes in opportunistic credit (e.g. distressed, special situations, and non-sponsored direct lending) and performing credit (primarily CLOs). The firm's experienced leadership, including CEO Jason Dillow, will remain in place, supported by its existing investment team and processes. The acquisition enhances Man Group’s $40bn credit platform by adding new capabilities in both opportunistic and performing credit, complementing its current offerings in direct lending, credit risk sharing, and residential real estate lending. It also expands Man Group’s U.S. footprint, aligning with its strategic goal to grow in North America. Steven Desmyter, president of Man Group, said: “This acquisition adds important new capabilities to our growing credit platform, further expanding and diversifying our offering to clients in line with the strategy we unveiled last year.” Man Group emphasized the deal builds on its 2023 acquisition of Varagon, positioning the firm to tap into growth opportunities amid ongoing credit market volatility. Dillow noted that Man Group’s platform and technology will strengthen Bardin Hill’s strategies and broaden investor access. https://lnkd.in/gbHCjeyv

Chevron has closed its $53 billion acquisition of Hess Corporation, ending a 20 month dispute that drew a rare public challenge from ExxonMobil. A final arbitration ruling dismissed Exxon’s claim to preemption rights over Hess’s Guyana stake, clearing the way for the deal to proceed. The outcome marks a major victory not only for Chevron, but also for the hedge funds and arbitrage investors who bet heavily on the deal closing. Firms like Millennium, Pentwater Capital Management LP, and HBK Capital Management had billions riding on the merger’s success, capitalizing on the spread between Hess and Chevron shares. With the deal finalized, those positions are expected to deliver significant returns, validating their high-conviction trades despite prolonged legal uncertainty. https://lnkd.in/e7EnFzM3

Qube Research & Technologies, a London-based hedge fund that has rapidly grown into a major player without a U.S. presence, is set to open a new office in Houston focused on commodities trading, including physical markets. This marks QRT’s first move into the U.S., the global hub for hedge funds, as it intensifies its focus on the lucrative and volatile commodities sector. To spearhead the expansion, QRT has hired Naveen Arora, formerly co-head of U.S. power trading at Goldman Sachs. The move comes as hedge funds increasingly compete for specialist talent in natural gas and power trading, driven by rising volatility, extreme weather, and growing energy demands from AI data centers. The U.S. hedge fund market, which accounts for 81% of global industry assets and hosts over 6,800 managers, offers a deep pool of trading talent. For QRT, entering this market reflects the broader industry trend: a global hunt for elite investment professionals as firms like Millennium, Citadel, and Point72 continue to expand internationally to secure top-tier talent. https://lnkd.in/gYNGAgpx

Traditional asset managers are reassessing their compensation structures as they compete with top private equity and alternatives firms for talent. Historically, these managers lag behind on pay, especially in private markets, prompting firms to consult pay specialists and consider new incentives like carried interest—a share of fund profits typically used in private equity and hedge funds. Aligning public and private market pay is an increasing challenge as firms grow their alternatives offerings. Over the past 18 months, groups like BlackRock, Amundi, L&G – Asset Management, Janus Henderson Investors, and Franklin Templeton have expanded into private credit, equity, real estate, and infrastructure. https://lnkd.in/gWxtnhBp

Hedge funds, once seen as exclusive to institutions, are now gaining traction among wealth advisers and high-net-worth individuals as tools for true diversification beyond the traditional 60/40 portfolio. This shift is driven by underperformance of traditional portfolios and doubts about the diversification value of private credit and real estate, which often carry similar macroeconomic risks as equities and bonds. Unlike these traditional alternatives, hedge funds offer flexibility, including long/short strategies, relative value plays, and systematic approaches that leverage data and adapt across time horizons, helping them perform well in volatile, complex markets. Systematic strategies, in particular, are highlighted for their data-driven investment processes and adaptability, making them effective diversifiers when correlations between traditional assets break down. Access to hedge funds is becoming easier for advisers via platforms like iCapital, making them a practical and appealing option to enhance portfolio construction for private wealth clients seeking uncorrelated returns. https://lnkd.in/gNbdZ2r7