Q3 2013 Hedge Fund Industry Data
In Q3 2013, the hedge fund industry witnessed an acceleration in growth, with Qualifying Hedge Fund net assets reaching $2.171 trillion. As the Federal Reserve unexpectedly delayed its tapering plans, risk assets rallied, providing a strong tailwind for hedge fund performance and capital appreciation across most major strategies.
Key findings this quarter:
- 1Qualifying Hedge Fund NAV grew a robust 4.1% to reach $2.171 trillion.
- 2The Fed’s "no-taper" decision provided a major boost to asset valuations.
- 3Prime broker concentration remained a focus for systemic risk monitoring.
- 4Gross notional exposure expanded as funds re-levered post-Taper Tantrum.
Macro Environment
The defining moment of Q3 occurred in September when the Federal Reserve surprised markets by deciding not to begin tapering its bond purchases. This "no-taper" decision caused a sharp reversal in the yield curve, relieving pressure on emerging markets and fixed-income strategies. Equities continued their strong run, and volatility (VIX) plumbed multi-year lows. This Goldilocks scenario of steady growth and ongoing central bank support fueled solid returns for hedge funds.
Regulatory Context
During Q3, the OFR and FSOC continued to refine their data processing capabilities for Form PF. The focus began shifting from pure data collection to identifying complex interconnections between large hedge funds and Global Systemically Important Banks (GSIBs), specifically scrutinizing prime brokerage exposures and repo market dependencies.
Future Outlook
With the taper decision deferred, funds entered Q4 with increased confidence but aware that policy normalization was inevitable. The focus shifted toward the U.S. government shutdown in October and the impending debt ceiling debate. Mangers broadly maintained long equity exposures while cautiously managing duration risk.
What moved most this quarter
Qualifying Hedge Funds Net Assets
Significant quarter-over-quarter change based on OFR Form PF data.
Estimated Gross Notional Exposure
Significant quarter-over-quarter change based on OFR Form PF data.
Industry Size
Qualifying Hedge Funds Net Assets
Net assets expanded a robust 4.1% to $2.171 trillion.
Leverage
Estimated Gross Notional Exposure
Gross notional exposure picked up to an estimated $13.1 trillion.
Complete Metric Changes
| Metric | Prior Q | Current Q | Change |
|---|---|---|---|
| Qualifying Hedge Funds Net Assets | 2,085 | 2,171 | +4.12% |
| Estimated Gross Notional Exposure | 12,600 | 13,100 | +3.96% |
Frequently Asked Questions
What drove the NAV increase in Q3 2013?
The increase to $2.171 trillion was primarily driven by strong equity market performance and the Fed’s surprise decision to delay tapering.
Which strategies performed best?
Long/short equity and event-driven strategies were the primary beneficiaries of the continued equity bull market.
Did the OFR identify new systemic risks?
Regulators began deeper analysis of prime brokerage concentration and the interconnectedness between large funds and major banks.
Methodology & Source Notes
Data is sourced from the definitive OFR Form PF aggregated releases. Comparisons are made quarter-over-quarter. All financial values are estimates based on aggregated filings and subject to reporting lags.
Data Provider: U.S. Office of Financial Research Hedge Fund Monitor. We fetch the latest publicly available aggregated data releases representing SEC Form PF submissions.
Reported values can be subject to revision by the OFR in subsequent quarters. We update historical tables to reflect these revisions where available. This analysis is provided for informational and educational purposes only and does not constitute investment advice.
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Previous Reports
Q4 2025 Hedge Fund Industry Data
Qualifying Hedge Fund NAV stabilized with a 1.5% bounce to close 2025 at $5.580 trillion.
Q3 2025 Hedge Fund Industry Data
Qualifying Hedge Fund NAV suffered a severe 3.8% contraction, falling to $5.500 trillion.
Q2 2025 Hedge Fund Industry Data
Qualifying Hedge Fund NAV grew 2.4% breaking the $5.700 trillion plane at $5.720 trillion.