Hedge Funds Shift Strategy Allocations Away From North America Toward Asia and Europe

Hedge funds have been shifting allocations away from North America over the past year, increasing demand for Asia- and Europe-focused strategies. This reweighting alters regional exposure patterns across the hedge fund sector and is changing demand for prime-brokerage and capital-introduction services for non-U.S. strategies. Reports from The Goldman Sachs Group, Inc. GS, JPMorgan Chase & Co. JPM, and Morgan Stanley MSpublished in January 2026 indicate demand for North America-focused hedge fund strategies fell over the past year while appetite for other markets increased. The Goldman Sachs Group, Inc.reported that at the start of 2026, Asia allocations were up 13% on a net basis, compared to 7% last year. Conversely, allocations to North America in the United States USwere set to rise at 7% in 2026, compared to an increase of 14% at the start of 2025.