Global investors reduce US hedge fund exposure as interest in Asian and European markets grows
Investors are cutting US hedge fund exposure for the first time since 2023. Interest in Asian and European managers has doubled as global trade sentiment shifts.
Insights:
A survey released today by Barclays PLC reveals that institutional investors are planning a measurable regional reallocation of capital, marking the first net planned reduction in U.S. 
US hedge fund exposure since 2023. The study, which collected responses from survey respondents (342 investors, $7.8 trillion AUM), found that these allocators intend to reduce their exposure to U.S. US-based hedge funds by around 5%. This shift coincides with a period where the hedge fund industry is navigating structural changes in hedge fund returns and fee shares.
US hedge fund exposure since 2023. The study, which collected responses from survey respondents (342 investors, $7.8 trillion AUM), found that these allocators intend to reduce their exposure to U.S. US-based hedge funds by around 5%. This shift coincides with a period where the hedge fund industry is navigating structural changes in hedge fund returns and fee shares.According to the findings announced on February 6, 2026, the capital being moved away from the American market is expected to be reallocated toward Asia-Pacific-based hedge funds and European-based hedge funds, specifically increasing allocations to Asia-based and Europe-based hedge fund managers. Barclays PLC noted that investor interest in Asia-Pacific and European managers has more than doubled on some measures since 2024. This trend represents a significant pivot for the hedge fund industry as allocators seek geographic diversification following the largest two-year industry growth for 2023–2025.
