Large multi-manager hedge funds are increasingly allocating capital to separately managed accounts, which manage money for a single client each, and a Goldman Sachs report shows that SMA assets under management stood at $255 billion at the end of 2025, up 20% from 2024. According to the report, hedge fund assets managed through SMAs grew at an annual rate of 13% over the past decade, outpacing the industry-wide rate of 5.5%. SMAs now account for 7.4% of total industry assets under management, half of all hedge funds run at least one, and their use is expanding among pension funds and sovereign wealth funds as well. The strongest growth was seen among the largest managers, those with more than $5 billion in assets under management, with the share of firms running SMAs rising 6% from 2024. Firms that include SMAs in their portfolios achieved returns about 0.4% higher than those that pool money from multiple investors.
Goldman Sachs Group IncGoldman Sachs is cited only as the author of the SMA report; no company-specific development affecting its own business.
