10 December 2025
Over the past few years, hedge funds have seen remarkable growth. As of June 2025 (latest available industry statistics), their collective Assets Under Management (AUM) have surged by an impressive 158.54% compared to December 2021.
The post-Covid period has proven to be highly favourable for hedge funds, driving significant flows into the industry, highlighting growing investor confidence and demand for non-traditional, alternative investment styles and strategies. In fact, 2024 saw record net inflows exceeding R13.31 billion.
(Source: ASISA)
AUM split:
The balance between Qualified Investor Hedge Funds (QIHF) and Retail Investor Hedge Funds (RIHF) has shifted, with QIHFs now accounting for 56.59% of the total AUM (R127.19 billion), while RIHFs represent 43.41% (R97.55 billion), maintaining the QIHF dominance in the market.
- QIHF: Higher minimum investment, monthly liquidity, and monthly pricing.
- RIHF: More accessible with daily liquidity and daily pricing.
The number of hedge funds decreased from 221 in December 2024 to 216 in June 2025, showing some rationalisation over the past 6 months and bringing the total back in line with December 2021 levels.
As the hedge fund landscape continues to evolve, and investor awareness increases, these trends demonstrate the sector's growing appeal and ascendence towards the mainstream.
