According to a report from IG Prime released on Thursday, approximately 25% of surveyed investors are considering changing where their money is invested in hedge funds due to concerns about risk, performance, and size.

Global hedge funds saw improved performance in 2024, with average returns reaching around 11% thanks to market volatility. In 2025, hedge funds delivered a 1.3% return as of the end of February.

Out of the 51 institutional clients surveyed by IG Prime, 76% intend to stick with their current hedge funds, while 24% plan to make a switch. Reasons for wanting to change included dissatisfaction with performance, risk management practices, and the overall size of the funds.

Many investors expressed a preference for smaller hedge fund managers, while others aimed to move to larger but more capable options. The report highlighted an interest in hedge funds focusing on stock trading, with some considering multi-strategy hedge funds that offer diverse trading approaches. Only a small percentage showed interest in commodity funds or those trading derivatives based on market volatility.