{"id":91999,"date":"2025-12-31T00:15:00","date_gmt":"2025-12-31T05:15:00","guid":{"rendered":"https:\/\/www.hedgeco.net\/news\/?p=91999"},"modified":"2025-12-30T22:58:37","modified_gmt":"2025-12-31T03:58:37","slug":"the-sma-gold-rush-custom-accounts-reshape-hedge-fund-allocations","status":"publish","type":"post","link":"https:\/\/www.hedgeco.net\/news\/12\/2025\/the-sma-gold-rush-custom-accounts-reshape-hedge-fund-allocations.html","title":{"rendered":"The SMA Gold Rush: Custom Accounts Reshape Hedge Fund Allocations"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2025\/12\/8EEE8707-27EB-48EE-93A7-5D303C492DAD.jpeg\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"678\" src=\"https:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2025\/12\/8EEE8707-27EB-48EE-93A7-5D303C492DAD-1024x678.jpeg\" alt=\"\" class=\"wp-image-91577\" srcset=\"https:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2025\/12\/8EEE8707-27EB-48EE-93A7-5D303C492DAD-1024x678.jpeg 1024w, https:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2025\/12\/8EEE8707-27EB-48EE-93A7-5D303C492DAD-300x199.jpeg 300w, https:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2025\/12\/8EEE8707-27EB-48EE-93A7-5D303C492DAD-768x509.jpeg 768w, https:\/\/www.hedgeco.net\/news\/wp-content\/uploads\/2025\/12\/8EEE8707-27EB-48EE-93A7-5D303C492DAD.jpeg 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<p><em>Separately Managed Accounts (SMAs) have moved from niche to mainstream.<\/em><br><em>Allocators prize transparency and liquidity, fueling SMA demand.<\/em><br><em>Hedge funds use SMAs to attract top portfolio manager talent.<\/em><br><em>SMA infrastructure continues to scale across major platforms.<\/em><\/p>\n\n\n\n<p><strong>(HedgeCo.Net<\/strong>) Across the hedge fund ecosystem, one of the\u00a0<strong>most transformative trends in late 2025 is the rapid adoption of\u00a0<em>Separately Managed Accounts (SMAs)<\/em><\/strong>\u00a0\u2014 custom portfolio solutions originally favored by ultra-wealthy individuals. Today, SMAs are poised to become a\u00a0<strong>central pillar of institutional hedge fund allocations<\/strong>.\u00a0<a href=\"https:\/\/www.businessinsider.com\/hedge-fund-sma-gold-rush-will-intensify-2026-2025-12?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noreferrer noopener\">Business Insider<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Why SMAs Now?<\/strong><\/h3>\n\n\n\n<p>Traditionally, SMAs were considered a niche, bespoke option. Now they are coveted by allocators for key benefits:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>?\u00a0<strong>Transparency<\/strong>\u00a0\u2014 SMAs provide daily reporting, eliminating \u201cblack-box\u201d concerns that often deter sophisticated investors.\u00a0<a href=\"https:\/\/www.businessinsider.com\/hedge-fund-sma-gold-rush-will-intensify-2026-2025-12?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noreferrer noopener\">Business Insider<\/a><\/li>\n\n\n\n<li>?\u00a0<strong>Liquidity and Control<\/strong>\u00a0\u2014 Unlike some commingled hedge funds, SMAs allow greater investor voice and trade-level visibility.\u00a0<a href=\"https:\/\/www.businessinsider.com\/hedge-fund-sma-gold-rush-will-intensify-2026-2025-12?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noreferrer noopener\">Business Insider<\/a><\/li>\n\n\n\n<li>?\u00a0<strong>Talent Access<\/strong>\u00a0\u2014 Managers use SMAs to attract top portfolio managers who seek autonomy and performance attribution clarity.\u00a0<a href=\"https:\/\/www.businessinsider.com\/hedge-fund-sma-gold-rush-will-intensify-2026-2025-12?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noreferrer noopener\">Business Insider<\/a><\/li>\n<\/ul>\n\n\n\n<p>Institutional platforms like Innocap and multi-manager operations have seen&nbsp;<strong>SMA capital surge by more than 25 %<\/strong>, crossing $300 billion in recent years, and insiders expect this trend to&nbsp;<strong>intensify through 2026<\/strong>.&nbsp;<a href=\"https:\/\/www.businessinsider.com\/hedge-fund-sma-gold-rush-will-intensify-2026-2025-12?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noreferrer noopener\">Business Insider<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Challenges Ahead<\/strong><\/h3>\n\n\n\n<p>Despite enthusiasm, the SMA model also raises questions about&nbsp;<strong>\u201cshadow alpha\u201d<\/strong>&nbsp;\u2014 the potential for allocators to internalize strategies rather than compensate PMs fairly.&nbsp;<a href=\"https:\/\/www.businessinsider.com\/hedge-fund-sma-gold-rush-will-intensify-2026-2025-12?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noreferrer noopener\">Business Insider<\/a><\/p>\n\n\n\n<p>Still, SMAs clearly represent a&nbsp;<strong>paradigm shift<\/strong>&nbsp;in how hedge funds package strategies for sophisticated investors.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n","protected":false},"excerpt":{"rendered":"<p>Separately Managed Accounts (SMAs) have moved from niche to mainstream.Allocators prize transparency and liquidity, fueling SMA demand.Hedge funds use SMAs to attract top portfolio manager talent.SMA infrastructure continues to scale across major platforms. (HedgeCo.Net) Across the hedge fund ecosystem, one [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":92002,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16409],"tags":[449,16411,16410,4388],"class_list":["post-91999","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-separately-managed-accounts","tag-liquidity","tag-shadow-alpha","tag-smas","tag-transparency"],"_links":{"self":[{"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/91999","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=91999"}],"version-history":[{"count":1,"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/91999\/revisions"}],"predecessor-version":[{"id":92000,"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/91999\/revisions\/92000"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/media\/92002"}],"wp:attachment":[{"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=91999"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=91999"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=91999"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}