Discretionary global macro hedge funds have surged to the top of institutional allocators’ priority lists, according to a report by Reuters citing Société Générale’s latest investor sentiment survey, amid persistent macroeconomic uncertainty and ongoing geopolitical tensions.
The survey, conducted between November 2024 and 15 May 2025, canvassed 322 hedge fund investors globally and revealed that 50% of respondents are planning to allocate capital to discretionary macro strategies over the next 12 months. This marks a 9% increase in interest from SocGen’s previous survey in autumn 2024, representing the highest level of enthusiasm for the strategy in two years.
Discretionary macro funds – which take active positions based on major global economic themes – have benefitted from an environment shaped by tariff volatility, shifting central bank policies, and stop-start trade dynamics, the report notes.
Performance data backs up investor sentiment, with discretionary macro hedge funds having returned approximately 7% year-to-date through April 2025, according to PivotalPath, outperforming the broader hedge fund universe, which is roughly flat over the same period.
The survey also found growing appetite for equity market-neutral strategies, with investor interest up 10% compared to last autumn. These funds aim to neutralise market direction by maintaining balanced long and short equity exposures – a strategy often sought during periods of heightened stock volatility.
Multi-strategy hedge funds are also gaining momentum. Roughly a third of respondents indicated interest in both systematic and fundamental multi-strat funds, up 5% and 4% respectively year-on-year. These vehicles aim to deliver diversified alpha across asset classes and styles under a single investment umbrella.
In contrast, investor sentiment toward crypto hedge funds remains weak. Only 6% of investors indicated an intention to allocate to the strategy – the lowest level recorded by SocGen in the past two years. The data reflects sustained caution from institutions amid ongoing regulatory uncertainty and subdued digital asset performance.
