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Diana Dieckman

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  1. Goldman Sachs17 min

    How Hedge Funds are Navigating a Volatile Market

    Diana Dieckman, Freddie Parker, Jake Seward, Diana Dykman

    Goldman Sachs surveyed nearly 450 allocators representing $1 trillion in assets, revealing that the hedge fund industry generated record AUM of $3.6 trillion in 2020 driven entirely by performance rather than new capital flows. While the sector recovered strongly from early-year losses with average returns exceeding 20%, the outlook for 2021 anticipates $35 billion in net inflows and a strategic pivot toward discretionary macro managers and Asian exposure, particularly China. This shift coincides with a reversal in fee compression, as rising performance prompted average management and performance fees to increase for the first time since 2012.