ASC Advisors October 2025 Newsletter
ASC Advisors October 2025 Newsletter
Welcome to ASC Advisors’ monthly newsletter, where we provide thoughts around recent developments affecting the alternative investment management industry, as well as provide updates on our firm and team.
The SEC Shifts Towards Deregulation
In September, the Securities and Exchange Commission approved three significant actions to shift towards deregulation.
First, the regulator voted to postpone hedge fund disclosure requirements to Oct 1, 2026. Last year, the SEC and the Commodity Futures Trading commission approved rules requiring private funds and investment advisers to disclose to regulators their exposures to investments, counterparties, currencies, countries and specific industries. This is now the second delay to comply with Biden-era regulations requiring enhanced disclosure from both the SEC and the Commodity Futures Trading Commission, which also delayed its Form PF disclosure requirements until Oct 1, 2026.
The delay will allow the agency to consider options to reduce the number of private industry firms that have to file confidential information with the SEC and to more broadly review potential changes to the confidential filing used by private funds without reducing necessary risk and exposure information needed. Chairman Paul Atkins believes that the government’s use of the data might not justify the extensive disclosures it currently requires from investment managers. In addition, investment managers have expressed concern that the additional reporting requirements do not accurately reflect their business structures, creating a misleading representation of the health of their funds.
Second, the SEC announced that it will no longer block companies from the public markets if they banned shareholders from filing class-action lawsuits. Previously, the SEC would use a company's mandatory arbitration to block or delay an IPO. This change will make it more attractive for companies to IPO by allowing them to include that provision. Atkins plans to take further steps to deregulate public listings and support newly public companies, potentially further accelerating the IPO market.
Finally, a regulatory panel has urged the U.S. government to strengthen protections for ordinary investors as private-equity firms seek to offer their funds more broadly. The SEC’s Investor Advisory Committee approved recommendations aimed at expanding access to private markets while ensuring safeguards, such as clearer disclosures and investor qualifications based on sophistication rather than wealth. The move comes amid efforts by regulators and the Trump administration to make private investments more accessible to retail investors, including through retirement plans like 401(k)s.
Multi Strats Surpass Equities For First Time
Multi-strategy hedge funds led asset growth in H1 2025, surpassing equity strategies for the first time, according to With Intelligence's Billion Dollar Club report.
Five firms now manage over $70 billion in assets and total assets from 551 managers of the Billion Dollar Club reached a record $3.6 trillion, up from 533 in 2024. BDC firms now control around 86% of the estimated $4.2 trillion global hedge fund market.
New York and London remain the top hubs, adding $90 billion and $48 billion respectively in H1. Most BDC managers saw growth, led by quant funds (up 14%) and event-driven strategies(up 13.5%). Quant firms dominated asset growth, while firms focused on managed futures saw the biggest declines.
The number of “super managers,” which are quantified by firms with over $20 billion in assets, rose to 38, while firms managing over $10 billion climbed to 83. Hedge funds returned 4.2% on an asset-weighted basis, with strong performances from activist, quant, and long/short equity strategies.
Investor sentiment improved, fueling $30 billion in net inflows—the strongest six-month total since 2021 and a sharp reversal from the $50 billion in outflows in 2024.
The Reemergence of Meme Stocks
Meme stocks, popular stocks hyped on social media, are making a comeback after fading out of view post-pandemic. It's reported that in an era defined by instant gratification and digital accessibility, the stock market has, for many, transformed from a bastion of long-term investment into a captivating, high-stakes game.
Recently, the VanEck Social Sentiment ETF (BUZZ), which tracks these buzzworthy stocks, is up 45% this year, beating the S&P 500's 14.3% return. Despite strong performance, investor skepticism remains, as the fund only holds $111 million in assets.
JPMorgan has also recently flagged a new wave of meme stocks that may experience sudden swings, including Opendoor, Kohl's, GoPro, and Krispy Kreme, noting high interest from both retail investors and hedge funds betting against them. These names also have elevated short interest from hedge funds' bearish bets.
The resurgence of this stick trend reflects a broader trend of day trader speculation driven by social media, commission-free trading, and a bull market backdrop, though financial and reputational risks remain.
Firm News
ASC Completes LinkedIn Ad Study, Reports Findings
LinkedIn has proven to be an effective tool in strengthening firm branding and visibility, elevating executive presence and allowing managers to communicate with key audiences. We recently conducted a study, analyzing how hedge funds and private equity firms use LinkedIn's advertising capabilities to reach their target audiences in 2024.
Overall, we saw a higher adoption rate of LinkedIn Ads from hedge funds, with 40% of the top firms actively running LinkedIn advertising campaigns to reach their key stakeholders globally. Conversely, while over 80% of the largest private equity firms ran LinkedIn advertising in 2024, only 9% of middle market firms ran promoted campaigns last year, leaving an opportunity for new entrants. We anticipate the number of firms using LinkedIn Ads to grow not only in the adoption of the advertising capabilities, but also in the frequency of the tool's use.
We believe the findings present unique opportunities for both hedge funds and private equity firms to reach their key stakeholders on the LinkedIn platform. If you are interested in learning more about our study or how to increase your firm's visibility on LinkedIn, please reach out to a member of the ASC team and we'd be happy to schedule time to discuss.
ASC Proudly Supports The Buoniconti Fund to Cure Paralysis
ASC was proud to once again show its support for The Buoniconti Fund to Cure Paralysis and The Miami Project to Cure Paralysis at the 40th Annual Great Sports Legends Dinner. ASC Managing Partner, Steven H. Bruce, represented the firm at the gala and was joined by sports legends and industry leaders alike – all who came out to champion the work toward a cure for paralysis.
Thank you to the Buoniconti Fund and The Miami Project to Cure Paralysis for your life changing and saving efforts.
