Jain Global, Bobby Jain’s multi-strategy hedge fund, generated strong trading profits last year, but heavy start-up costs significantly reduced returns for investors, highlighting the financial pressures facing new entrants to the sector, according to a report by Bloomberg.
The firm produced around $750m in gross trading profits in 2025 as it gradually deployed the $5.3bn raised at launch. However, the report cites unnamed people familiar with the matter as revealing that, after fees and expenses, investors captured only about a quarter of those gains, translating into a net return of roughly 3.7%.
The fund’s experience underscores the cost-intensive nature of multi-strategy hedge fund launches, where investors typically bear the full operating expenses. These costs can be particularly punitive in the early stages, when capital is only partially deployed but infrastructure, technology and staffing are built out at full scale. Industry data suggests investors at more mature multi-strategy platforms typically retain closer to 40% of profits.
Jain Global began the year with about $2bn invested and ended with roughly $5bn deployed across around 50 trading teams. Strong contributions reportedly came from equities portfolio managers Townie Wells and Mike Scheer, alongside traders specialising in bank capital relief, precious metals and macro strategies.
Despite the muted net returns, investors backed the fund with an understanding that the first years of a large-scale launch would be expensive. Jain opted to establish a fully operational global platform from day one, rather than building incrementally, a strategy that places early pressure on performance but is intended to support longer-term growth.
The fund’s launch comes at a time when established multi-strategy giants such as Citadel, Millennium, and DE Shaw have slowed or halted asset gathering, creating opportunities for new platforms to attract institutional capital.
