Multi-strategy hedge fund majors Millennium Management and Citadel delivered double-digit returns in 2025, rebounding from a weak start to the year, though they trailed several smaller multi-manager peers, according to a report by the Financial Times.
Millennium, led by Israel Englander, returned 10.5% for the year, while Ken Griffin’s Citadel gained 10.2%, according to sources familiar with the figures. Both firms experienced early-year losses as markets were unsettled by the US trade war but recovered in the second half as equity markets rallied, with the S&P 500 finishing up 16.5% and the FTSE 100 rising 21.5%.
Despite the solid results, smaller multi-manager funds outperformed. ExodusPoint posted an 18% gain, while Schonfeld Strategic Advisors’ flagship fund returned 12.5%. These multi-manager firms operate across multiple “pods,” or trading teams, spanning equities, fixed income, commodities, and other asset classes, leveraging centralised risk management to deliver steady returns regardless of market direction.
The model has historically appealed to large institutional investors, such as pension funds, who seek consistent performance, though it often involves higher fees and pass-through costs. Multi-manager firms aim for absolute returns rather than tracking market indices, making them resilient during periods of volatility.
Macro-focused hedge funds meanwhile, had a banner year, with Bridgewater Associates’ Pure Alpha fund delivering a 33% return, marking the firm’s most profitable year since its founding 50 years ago.
