TOP STORY: Global hedge funds delivered their strongest first-half performance in five years, overcoming a sharp market selloff in March to generate average returns of 7.2% through 30 June 2026.
Quantitative hedge funds are experiencing their most challenging period since late 2023 as a sharp reversal in momentum trades disrupts systematic strategies and prompts deleveraging across the industry, cited a Bloomberg report.
Smaller specialist hedge funds outperformed many of the industry’s largest multistrategy firms during the first half of 2026, with equity long/short and event-driven strategies posting the strongest gains, according to a Bloomberg report.Â
China’s quantitative hedge funds are attracting record inflows as AI-driven strategies continue to outperform traditional discretionary managers, accelerating a shift in investor preferences across the country’s hedge fund industry.
Multi-manager hedge funds including Millennium Management and Point72 posted strong gains in June as markets rebounded following volatility linked to the Israel-Iran conflict, capping a solid first half of 2026 according to a report by the FT.
The Magnificent Seven rebounded sharply on Monday as hedge funds unwound a popular relative-value trade that had favoured semiconductor stocks over mega-cap technology names, according to a report by Market Watch.