Thoughts
Podcast: Multi-strategy takes pole position in July inflows and a conversation around AI
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On the latest episode of the AFI podcast, Declan Quilligan, Head of Hedge Fund Services, Citco Fund Services, updates on July’s performance which highlighted another strong month of net inflows at $12bn, with multi-strategy funds taking the lion’s share. Quilligan was joined by Albert Bauer, Chief Technology Officer, Citco Technology Management, Inc,. who shared insights on how AI fits within the operating model.
Bauer delves into AI and its deployment throughout the industry, from embedding it within the operating model and balancing it with human oversight, through to strategy and innovation.
Key takeaways
- Multi-strategy funds are approaching the $1trn mark – it is one of the largest strategies in the hedge funds industry reflecting an investor appetite for diversified, resilient strategies.
- Managers are increasingly focused on: managing operational complexity, strengthening risk frameworks, and attracting top talent. This is fueling greater adoption of strategic outsourcing – particularly in the middle office – and AI is becoming more deeply embedded across front, middle, and back office.
- The question managers should ask their providers is: does AI help the outcome in terms of the services that the providers are trying to produce?
- AI enables greater access to information resulting in better outcomes for clients, whilst heavily reducing risk to organizations, but it still requires human oversight to pick up the processes and ensure service delivery.
2026 Multi-Strategy Hedge Fund Outlook – Learn how multi-strategy managers are adapting their operating models to support scale, efficiency and long-term growth.