2026 Multi-Strategy Hedge Fund Outlook

Multi-strategy hedge funds are expected to remain the fastest-growing segment to attract strong inflows and deliver robust performance

Multi-strategy hedge funds are set to remain the industry's fastest-growing segment, with 86% of senior participants surveyed in Citco's Multi-Strategy Outlook 2026 expecting them to outpace other strategies over the coming year. The findings follow a strong 2025, in which multi-strategy funds delivered a weighted average return of 22.7% and attracted $53.4bn in net inflows — the majority of hedge fund capital tracked that year.

As assets scale rapidly, manager focus is shifting from pure performance to operational resilience. Operational complexity, risk management and recruitment were identified as the three most pressing challenges, with competition for portfolio manager and trading talent driving up costs and complicating efficient growth. In response, outsourcing is expected to accelerate, particularly across middle-office functions such as reconciliation, treasury and collateral management.

Download our report to learn more about why the next phase of multi-strategy growth will be defined not only by returns, but by the strength and scalability of underlying operating models.