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Multistrategy hedge funds grow assets as institutional allocators return

Five-year volatility is 6.7% for multistrategy funds and 11.8% for the wider hedge fund universe, Goldman Sachs data show.

6.2%Multistrategy volatility, year to June 30, 2026

At a glance

  1. Goldman Sachs data in the report put 12-month volatility at 6.2% versus 11.3% for the wider hedge fund industry.
  2. A selector matching a broad hedge fund allocation's volatility with multistrategy funds would hold roughly 1.8 times the notional on those five-year figures, multiplying management-fee dollars and the capacity consumed.
  3. External allocations through separately managed accounts reached $47 billion, with the average allocation nearly $190 million, up 19% year on year, as Alternatives previously reported.

Multistrategy hedge funds grew assets over the 12 months to June 30 as institutional allocators returned, according to a Pensions & Investments report cited by Hedgeweek.

Goldman Sachs data in the report put 12-month volatility at 6.2% versus 11.3% for the wider hedge fund industry. Five-year volatility was 6.7% for multistrategy funds and 11.8% for the broader hedge fund universe.

A selector matching a broad hedge fund allocation's volatility with multistrategy funds would hold roughly 1.8 times the notional on those five-year figures, multiplying management-fee dollars and the capacity consumed.

External allocations through separately managed accounts reached $47 billion, with the average allocation nearly $190 million, up 19% year on year, as Alternatives previously reported.

Multistrategy funds ran at about half the industry's volatility

Annualised volatility over 12 months to June 30, 2026 and over five years, %

  • 12-month
  • 5-year
Source: Goldman Sachs data via Pensions & Investments, cited by Hedgeweek
Show as table
Group12-month12-month share5-year5-year share
Multistrategy6.2%35.4%6.7%36.2%
Broader hedge funds11.3%64.6%11.8%63.8%

Reported by the Hedge Funds & Liquid Alts desk from Hedgeweek, Pensions & Investments (cited by Hedgeweek) and Goldman Sachs data (cited by Pensions & Investments). Published . Corrections

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