Hedge funds ended the first half of 2025 with positive returns, overcoming market swings tied to US trade policy uncertainty and riding the momentum of record-setting equity markets, according to a report by Reuters citing a Goldman Sachs report.
Equity long-short managers outperformed in June, gaining more than 3%, while posting year-to-date returns above 6%. Systematic equity strategies, despite slipping 0.68% in June, remain the best performers overall in 2025 so far with nearly 12% gains. Market tailwinds were driven by a tech-fueled equity rally and volatility trading opportunities, though losses in healthcare and consumer discretionary stocks weighed on some strategies.
Leading multi-strategy funds delivered modest but consistent returns, with Schonfeld Strategic Partners up 1.1% in June (6% YTD) and Millennium Management posting a 1.7% monthly return. Bridgewater Associates stood out, with its flagship Pure Alpha 18% Volatility Fund gaining 17% in H1, while its Asia Total Return strategy posted an 18% gain.
Systematic hedge fund Man AHL Alpha Programme was up 3.15% in June and 7.78% YTD, while Rokos Capital Management posted a 2.58% June return, taking its year-to-date figure to 12.26%. Meanwhile, Marshall Wace saw mixed results: its Market Neutral TOPS strategy gained 0.38% in June (11.23% YTD), while the Eureka Fund delivered a strong 5.34% monthly performance, bringing its 2025 return to 4.47%.
Hedge funds such as Balyasny (2.4% in June, 7.3% YTD), Dymon Asia (2% in June, 10.1% YTD), and Pinpoint (3.5% in June for the Multi-Strategy Fund; 4.4% for the China Fund) also featured among the top performers.
Despite some June underperformance from AQR’s Delphi Long-Short Equity Strategy (-2.1%), other AQR strategies remained in positive territory for the year, including the Apex and Helix funds.
While crowded short positions and sector-specific weakness affected returns for some quant managers, hedge funds overall demonstrated resilience, supported by strong institutional inflows and tactical positioning.
