Funds
Hedge funds delivered an average return of 10.12% in 2024, with volatility five times lower than that of the MSCI World index — which climbed 19.22% — and generated 2.62% of alpha compared to none in 2023, according to the 2025 Hedge Fund Outlook report from BNP Paribas.
The rapid rise of multi-manager hedge funds could pose significant risks to financial stability due to correlated activity and their aggressive risk management practices, according to a report by Bloomberg citing comments from Bank of England Governor Andrew Bailey.
Hedge funds began 2025 on a positive note, recording gains in a volatile January shaped by political transitions and turmoil in the technology sector. The HFRI Fund Weighted Composite Index climbed 1.4%, while the HFRI Equity Hedge Index led the charge at 2.1%.
Said Haidar’s macro trading hedge fund, Haidar Jupiter, delivered a 15.8% gain in January, marking its best performance since June 2023 and offering investors a moment of relief following an extended period of steep losses, according to a report by Bloomberg.
Citadel has provided an unusual look into the performance of its largest multi-strategy funds, revealing an impressive $57bn in gains during a period of significant profitability for the firm, the most lucrative hedge fund business in history, according to a report by the Business Times.
The Wellington Fund, the flagship hedge fund at Ken Griffin’s multi-strategy firm Citadel, delivered a 1.4% gain in January, navigating a volatile market environment, according to a report by CNBC citing a source familiar with the results.
Twelve Capital and Lumyna Investments, part of Generali Investments, have launched a new parametric insurance-linked securities (ILS) fund – Twelve Capital Parametric ILS Fund – backed by a leading European institutional investor.
Bridgewater Associates’ flagship macro fund, Pure Alpha, achieved an 8.2% gain in January, navigating a volatile month marked by a sell-off in AI-related stocks and uncertainty surrounding the incoming US administration, according to a report by Reuters.
Despite a turbulent start to the year marked by geopolitical uncertainty and market volatility, major hedge funds posted positive returns in January, with multi-strategy firms including Walleye Capital and Balyasny Asset Management proving particularly resilient, according to a report by Bloomberg.
David Einhorn’s Greenlight Capital started 2025 on a strong note, delivering a 4% gain in January, a return that saw the form outpace both the S&P 500’s 2.7% rise and the Nasdaq Composite’s 1.6% increase, according to a report by Institutional Investor.
