Key Takeaways
- • Citco recorded USD 36 billion of net inflows into hedge funds and alternatives in the third quarter, according to the primary source.
- • Hedge funds were nursing their worst trend-following losses since 2024 at the start of the week, per the Opalesque roundup.
- • Two established financing trades (basis trades) lost momentum, and the lowest-rated corners of credit showed real stress.
- • A suspected hack at Binance reignited concerns over the fragility of digital asset market infrastructure.
- • BlackRock argued that hedge funds should move closer to the core of institutional portfolios.
Summary
Hedge funds began the week of November 2, 2026 nursing their worst trend-following losses since 2024, according to Opalesque's weekly roundup, and closed the week with markets positioned for a sharp reversal. Over the period, two of the industry's most dependable financing trades, basis trades, lost their shine, while the lowest-rated segments of credit showed signs of real stress.
In digital assets, a suspected hack at Binance highlighted the fragility of the underlying market infrastructure. Despite these pressures, capital continued to flow into the sector. Citco counted USD 36 billion of net inflows across hedge funds and alternative vehicles in the third quarter, and BlackRock argued that hedge funds now belong closer to the core of portfolios.
The roundup also referenced an anticipated Anthropic IPO looming over crowded tech short positions, though the primary source provides limited detail on that development. Opalesque also published two new exclusives: one on Fasanara's alpha-only multi-strategy platform, which combines close to 200 pods across three engines, and another on Europe's macro risks.
Other items in the roundup included DACH institutions lifting alternatives to 32.3% of portfolios, and Korea Exchange Chairman and CEO Jeong Eun-bo meeting CalPERS CIO Stephen Gilmore to promote greater investment in Korean capital markets.
In digital assets, a suspected hack at Binance highlighted the fragility of the underlying market infrastructure. Despite these pressures, capital continued to flow into the sector. Citco counted USD 36 billion of net inflows across hedge funds and alternative vehicles in the third quarter, and BlackRock argued that hedge funds now belong closer to the core of portfolios.
The roundup also referenced an anticipated Anthropic IPO looming over crowded tech short positions, though the primary source provides limited detail on that development. Opalesque also published two new exclusives: one on Fasanara's alpha-only multi-strategy platform, which combines close to 200 pods across three engines, and another on Europe's macro risks.
Other items in the roundup included DACH institutions lifting alternatives to 32.3% of portfolios, and Korea Exchange Chairman and CEO Jeong Eun-bo meeting CalPERS CIO Stephen Gilmore to promote greater investment in Korean capital markets.
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