The smart money is piling back into hedge funds. Industry assets just climbed to a fresh record —$5 trillion, according to Hedge Fund Research. The third quarter of 2025 saw almost$34 billion in net inflows , the largest quarterly haul since 2007, before the financial crisis changed investors’ views on risk. The new assets under management record is about that fresh money, but it’s also about the strong performance that’s functioning to attract that cash. Average returns of 5% for the quarter encouraged ...