The dominance of multi-PM platforms continues to re-shape the wider hedge fund market. In 2024, there has been a new dynamic at play as traders with pod-shop experience have chosen to start their own firms in unprecedented numbers — a trend made possible by a new willingness on the part of the platforms to make external allocations.
“The trend of platforms allocating to external funds, often straight after they have spun out, continues to re-shape the industry,” explains Jon Caplis, founder of PivotalPath, the New York-based hedge fund research firm.