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Hedge fund assets passed the $4 trillion mark during Q1 2021, ending the quarter at $4.15 trillion.

Why it matters: As hedge funds have grown in size — almost doubling their $2.3 trillion assets under management in 2012 — so has their power to influence markets.

What to watch: Preqin's 2020 survey of hedge fund managers identified that a shift toward ESG-friendly investment policies is percolating. 

While just 39% of funds have an active environmental, social and governance policy, another 16% are considering or implementing ESG plans.

One example: Ray Dalio's Bridgewater Associates, the world's largest hedge fund, in April launched a new sustainable investing venture.

Go deeper: Hedge funds find new favorite short

Hedge fund assets and influence grow

They passed the $4 trillion mark during Q1 2021.

Hedge funds

Hedge fund assets passed the $4 trillion mark during Q1 2021, ending the quarter at $4.15 trillion.Why it matters: As hedge funds have grown in size — almost doubling their $2.3 trillion assets under management in 2012 — so has their power to influence markets.

After a record economic expansion, the coronavirus pandemic sent the U.S. economy into a recession as unemployment soared to staggering heights. The country now faces urgent questions about how much stimulus is needed for reeling consumers and businesses, and what a recovery might look like.