Hedge funds have kicked off the fourth quarter of 2025 with robust performance, posting a weighted average return of 2.1% in October, according to the latest Monthly Hedge Fund Report from global hedge fund administrator Citco.
Global macro strategies led the gains with a 5.6% return, followed by equity funds at 2.6%, while multi-strategy funds delivered steady performance of 0.9%. Overall, 65% of funds reported positive returns, with the largest managers—those with over $3bn in assets under administration – outperforming peers with a 2.6% average gain.
The report also highlighted strong capital inflows, with net subscriptions totalling $10.6bn for October, one of the highest monthly totals of 2025. Year-to-date subscriptions have now reached $56bn, underscoring continued investor confidence in the sector. Multi-strategy funds were the dominant recipients, attracting $9.4bn in October and over $45bn YTD.
By region, the Americas captured the bulk of inflows at $9.6bn, while Europe and Asia saw more modest subscriptions of $0.8bn and $0.1bn, respectively.
