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.
According to data from research firm PivotalPath, cited by Bloomberg, technology-focused managers led the gains. Returning an average of 27% during the period as investors benefited from a powerful rally in semiconductor stocks and growing enthusiasm around artificial intelligence-related themes.
Several prominent firms reported particularly strong results. Marshall Wace’s Eureka fund gained 6.7% in June, taking its first-half return to 19.9%, according to people familiar with the matter. Meanwhile, the macro-focused Oculus fund managed by D.E. Shaw advanced 5.6% in June, lifting its year-to-date performance to 27.4%.
Specialist strategies also contributed meaningfully to industry gains. A number of managers profited from index-rebalancing events, including the accelerated inclusion of SpaceX in Nasdaq and FTSE Russell benchmarks. At Millennium Management, two teams dedicated to trading index changes reportedly generated approximately $3.7 billion in June alone, supporting the firm’s monthly performance.
Among the standout performers, Whale Rock Capital Management returned 72.5% during the first six months of the year, driven largely by semiconductor positions and an investment in Anthropic. Appaloosa Management posted gains of approximately 32%, benefiting primarily from exposure to memory-chip companies that rallied on rising demand for AI computing infrastructure.
The strong first-half results represent a notable recovery from a difficult March, when conflict involving Iran disrupted shipping through the Strait of Hormuz, driving oil prices higher and reigniting inflation concerns. Earlier in the year, fears that AI would disrupt established software businesses also triggered a sharp sector selloff that weighed heavily on some hedge fund portfolios.
The industry’s recent resilience is also attracting renewed investor interest. According to PivotalPath, hedge funds have generated annualised returns of 8.5% since January 2020, outperforming investor expectations at a time when other alternative asset classes, including private equity, have struggled to deliver comparable results.
