Discover the latest findings in the 2026 Hedge Fund Allocation Survey – ‘The Halfway Mark’ report from BNP Paribas’ Capital Introduction team.
2026 Hedge Fund Allocation Survey shows strong optimism
In their latest report, BNP Paribas’ Capital Introduction team surveyed 175 allocators across 18 countries that collectively manage US $1.2trn of hedge fund assets. The results show strong optimism in hedge funds, with equity long/short leading performance and responding allocators preparing to deploy $24.9 billion in new capital before year-end. The report highlights key trends in strategy preferences, regional demand, and asset flows shaping the second half of 2026.
2026 Hedge Fund Allocation Survey: Key Takeaways
• Hedge fund performance: H1 2026 average realised return +7.46%, on track to beat the 9.6% target for the year.
• Top strategies: Equity long/short (+9.51% fund‑weighted; +12.58% asset‑weighted), Quant macro (+7.13% fund‑weighted; 7.30% asset weighted), Multi Strategy (+6.20 fund-weighted; +8.03% asset weighted) and Convertible Trading (+6.11 fund-weighted; +8.03% asset weighted) lead the pack.
• CTA & Quant Multi‑Strategy alpha: CTA funds delivered ~7% alpha over the past 12 months; Quant multi‑strategy posted ~7% alpha over 3‑ and 5‑year horizons.
• Regional appetite: Europe and Asia are the most active regions for new allocations.
• Source of new capital: 38% of inflows are fresh cash; the rest stems from redeploying redemption proceeds, long‑only equity and fixed‑income.
Capital deployment has accelerated sharply in the first half of this year, more than doubling the pace of H1 2025. This acceleration is a direct response to the industry’s ability to deliver robust returns, even in complex environments. As we move into the second half of 2026, we expect this trend to persist, driven by a consistent appetite for strategies that provide both growth and diversification in a shifting global market.
Marlin Naidoo, Global Head of Capital Introduction, BNP Paribas
2026 Hedge Fund Allocation Survey: want to know more?
All figures are taken from the BNP Paribas Capital Introduction “The Halfway Mark – 2026 Hedge Fund Allocation Survey” (August 2026). Past performance is not indicative of future results.
FAQs for the 2026 Hedge Fund Allocation Survey
What was the average hedge fund return in H1 2026?
The average realised return across allocators’ hedge fund portfolios was +7.46% in H1 2026, on track to exceed the full-year target of 9.6%. Top strategies like equity long/short returned +12.58% (asset-weighted).
Which hedge fund strategies performed best in H1 2026?
The top-performing strategies (asset weighted) in H1 2026 were:
– Equity long/short (+12.58%)
– Convertible trading (+8.03%)
– Quant macro (+7.30%)
– Multi-strategy (+8.03%)
– CTA funds delivered the highest alpha (~7%) over 12 months
How much capital is expected to flow into hedge funds in H2 2026?
Responding allocators plan to deploy $24.9 billion in net new capital to hedge funds in H2 2026, following $26.8 billion in H1 2026 – more than double the inflows seen in H1 2025 ($10.8B).
Which regions are hedge fund allocators targeting in 2026?
Europe (49%) and APAC (48%) lead H2 2026 allocations, followed by North America (42%). China sees a notable increase (17% in H2 vs. 12% in H1), while India remains niche (7%).
Are alternative UCITS gaining traction in 2026?
Yes, alternative UCITS saw $1.2B in net inflows from responding allocators in H1 2026, with another $1B expected in H2. Equity long/short and market neutral were the most allocated strategies, while Europe and APAC are key focus regions.
Which hedge‑fund strategy is currently most in demand?
Fundamental equity long/short strategies lead the demand, with 61 % of allocators planning to allocate to them.
How much net new cash was added to hedge funds in H1 2026?
Allocators added a net US $26.8 bn to hedge‑fund portfolios in the first half of 2026.
