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Managed funds
Don’t overlook hedge funds within idiosyncratic markets
Whether it’s a byproduct of geopolitical tensions, macroeconomic instability, or simply reflects the frazzled state of investors groping for greater portfolio resilience amid unprecedented market uncertainty, hedge funds are again on the rise. After a period of muted flows, hedge funds have witnessed a resurgence of investor interest, with global assets under management (AUM) recently reaching a record high. The sector is understood to have attracted around US$34 billion (A$52.3 billion) in net new capital in the third quarter of 2025 alone, marking the biggest quarterly inflow since 2007. According to data from Hedge Fund Research (HFR), total global AUM has now been pushed to a record $5 trillion. Fund inflow into hedge funds has clearly benefitted from the idiosyncratic nature of markets, with asset managers grappling with long-standing issues around benchmarks, performance and costs.Hedge funds ride AI and infrastructure waveKenneth Heinz, president of HFR attributes hedge fund historic growth performance in recent months to a combination of powerful trends, including accelerating M&A, expanding cryptocurrency investment, falling geopolitical risk, expectations for lower interest rates, and an unprecedented surge
Managed funds
Blackstone hails exceptional quarter as profit falls
Blackstone Inc. has reported a 20% fall in net income for the third quarter of the 2025 financial year (Q3 FY25). The world’s largest alternative asset manager said net income was US$624.917 million in the three months ended 30 September compared with $780.835 million in the previous corresponding period. Diluted earnings per share (EPS) fell 22% to 80 cents on revenue, which dropped 16% to $3.088 billion, but distributable earnings, which are available as cash to pay shareholders, surged 42% to $1.889 billion. In the nine months to 30 September, net income fell 3% to $2.004 billion and EPS dropped 5% to $2.57 on revenue, which was 0.5% down at $10.089 billion, but distributable earnings gained 28% to $4.866 billion.Source: Blackstone “Blackstone reported an exceptional third quarter, highlighted by outstanding financial results and robust fund-raising momentum across our three major channels – institutions, insurance and individuals,” Chairman and Chief Executive Officer Stephen A. Schwarzman said in a press release. Inflows reached $54 billion in the quarter and $225 billion over the last twelve months. “The leading platforms we’ve established in key growth areas, such as digital and energy infrastructure, are hel
Managed funds
Oaktree still standing as a bidder, Perpetual says
Perpetual has effectively rejected a report that one of the prospective bidders for its wealth management business is considering pulling out of the sale process. The financial services company was responding to an article in the Australian Financial Review (AFR) newspaper, which reported Oaktree Capital Management was “seriously weighing withdrawing from the process”. The AFR claimed Oaktree, which was looking to make an offer via AZ Next Generation Advisory, was “fed up” that the Perpetual Board had strung it along for 150 days. In an ASX announcement, Perpetual said it noted media speculation regarding the proposed sale. “Perpetual is continuing to progress the sale of the business and is currently in discussions with more than one interested party,” the company said. “Perpetual will keep shareholders and the market informed in-line with its continuous disclosure obligations.” The 139-year-old company had been put into play in December 2023 when Washington H. Soul Pattinson launched an offer for the whole company worth $3 billion. Perpetual rejected it and instead revealed plans to split its asset management business from its wealth management and corporate trust businesses, prompting offers in January 2024
Managed funds
Clime Investment's early-stage recovery shows promise
Following a few turbulent years mired by losses and leadership issues, the ASX-listed wealth group Clime Investment Management (ASX: CIW) could be worth keeping on radar following early signs that robust plans by managing director Michael Baragwanath to turn the ship around are starting to bear fruit. While earnings have declined by 55.5% per year over the past 5 years – with large one-off items impacting financial results – efforts to reposition to company as a true multi-asset, client-focused manager of scale appear to be rekindling investor interest in the stock. FY25 saw the fund manager deliver a net profit after tax of $510,676 following a massive loss of $3.8 million in FY24. Driven by the private wealth and corporate advisory unit, gross revenue of $13.4 million grew from $11.8 million year on year. Funds under management, advice and mandates have grown to $1.7 billion by offering individually managed accounts, managed funds and separately managed accounts.Early stage restructure While much of the turnaround can be attributed to offloading Madison Financial Group last June to Infocus, this was also accompanied by a broad restructure, which delivered over $2 million in annual savings from executive costs, third-
Managed funds
Why investing with active fund managers can be dicey
Given that fund managers the world over have made an art form out of failing to beat their benchmarks – aka a passive index – it’s bemusing why investors and some financial media continue, in varying in degrees, to have an unwarranted reverence for the prognostications they make about markets. While fund managers may appear to be well-intended in sharing stock picks, it’s important for you, the investor, to stop and question why A) they’re sharing their views with the market, B) how they’ve arrived at these conclusions and C) over what time frame their recommendations are expected to hold water.Shopping their own bookFirstly, it’s important to realise that when a fund manager talks about ‘high conviction’ stocks, all it may be doing is “shopping its book”. In other words, a fund manager may only be singing the praises of the stocks it has already placed bets on – within its portfolio - in the hope that retail investors will buy into their positive sentiment, which will help drive the share price higher. Secondly, it’s important to recognise that investors who place their trust in active fund managers are - more often than not - paying a premium for their inferior stock-picking. Active fund managers who aim to beat benc

Managed funds
Goldman: Hedge funds ramp up bets on banks, insurers
Hedge funds are turning more bullish on financial stocks, with banks, insurers, and consumer finance firms attracting the fastest pace of buying in three months, according to Goldman Sachs. The bank’s latest research note said hedge funds increased positions in financials last week amid expectations that higher levels of dealmaking and a potential easing of regulations would bolster sector profitability. An index of European banks has already risen more than 40% this year, while U.S. banks have gained just over 20%. The note said hedge funds showed no clear regional preference, though North America and Europe accounted for the majority of long positions. After a period of reduced activity in August, hedge funds lifted gross leverage - a measure of overall trading exposure - by the largest amount in eight months last week. Financials were the second most bought sector tracked by Goldman’s prime brokerage unit, with technology stocks following close behind. While banks typically benefit from higher interest rates, Goldman said that the prospect of lower rates had already been priced into valuations. The Federal Reserve cut interest rates last week for the first time since December and signalled further reduction
Managed funds
Charles Schwab expands with 16 new branches, 400 hires
Charles Schwab is doubling down on its retail presence, announcing plans to open 16 new branches across the United States and hire up to 400 staff to bolster its wealth advisory teams. The Texas-based financial services and custodial firm said Wednesday it has already opened several of the planned locations, with another 25 existing branches set for expansion or relocation. The growth initiative underscores Schwab’s belief in the continued importance of in-person financial advice, even as digital services remain central to its strategy. The new hires will include financial and wealth consultants working alongside financial advisors to support high-net-worth and ultra-high-net-worth clients. Additional positions will be available in Schwab’s corporate offices, spanning client services, wealth management, and roles focused on digital innovation and artificial intelligence. Jeannie Bidner, head of Schwab’s branch network, described the physical footprint as a “competitive differentiator” in connecting with and serving clients. Schwab is targeting expansion in high-growth, high-wealth markets such as Texas, Florida, and California. One of the first new branches has already opened in Austin, with another set to follow
Managed funds
Citi partners with BlackRock on US$80bn wealth solutions
Citigroup’s wealth division has unveiled a landmark partnership with BlackRock to launch Citi Portfolio Solutions powered by BlackRock, a customised offering aimed at enhancing the investment experience for Citi’s global client base. The collaboration combines Citi’s advisory expertise with BlackRock’s investment management capabilities and technology. Pending regulatory approval, the new platform is expected to roll out in the fourth quarter of 2025 and will see BlackRock manage approximately US$80 billion (A$122.2 billion) in assets for Citi Wealth clients across nearly 100 countries. Citigroup Head of Wealth, Andy Sieg noted: "We want to bring best-in-class advice, solutions and service to our clients, and we want to serve more of the world’s changemakers. With this offering, we can accomplish both. "It brings together the sophisticated relationship-driven and market-based advice of our bankers, backed by the insights of our own Chief Investment Office, with the renowned investment expertise and innovative technology capabilities of BlackRock.” The move reflects a strategic shift by Citi Wealth, which oversees more than $1 trillion in client balances, including $635 billion in investment assets as of Q2 2025.
Managed funds
Wild price swings mark ASX profit season - brokers
An increase in share price volatility was the stand-out feature of the Australian profit-reporting season, which had been the weakest for many years, according to stockbroking strategists. Morningstar equity strategist Lochlan Halloway said results had been progressing reasonably well up to 27 August, when the research firm had seen announcements from 151 of the Australian Securities Exchange-listed (ASX) companies it researched. Morningstar had raised fair valuations for 44% of these companies, slightly higher than in recent reporting seasons, and cut valuations for 14% of them, which was a meaningful increase but not inconsistent with recent reporting seasons. “Perhaps most remarkable is the big uptick in share price volatility,” Halloway wrote in a note. The standard deviation of price changes on results days had spiked from about 7% a week earlier, which at that time was well below the level seen during the February 2025 and August 2024 reporting seasons, to more than 10%. Although the results were disappointing, “the noise” was amplified by passive money and algorithmic traders, which was emblematic of market behaviour with earnings ‘beats’ and ‘misses’ generally met with a similar move in the share price. V