Equity-focused hedge funds ended 2025 on a strong note, with several high-profile managers delivering double-digit gains as global equity markets pushed higher despite episodes of tariff-driven volatility, according to a report by Financial News London.

Edgar Allen’s High Ground Investment Management was among the standout performers, posting a 39.4% gain for the year, according to people familiar with the matter. The global equities manager capped the year with a 3.5% gain in December, extending a strong fourth-quarter run that also included gains of 2.5% in October and 3.6% in November. High Ground now manages approximately $2bn in assets.

The rally in equities provided a supportive backdrop for discretionary stock-pickers. The S&P 500 rose more than 16% in 2025, reaching record highs in December, helping drive strong absolute returns across long-biased and long/short equity strategies.

Bill Ackman’s Pershing Square Capital Management also benefited from the buoyant environment, ending the year up 20.9%, according to figures published by the firm. Ackman, one of the industry’s most prominent hedge fund managers, has continued to maintain a concentrated, high-conviction equity portfolio.

Other equity hedge funds also posted notable gains. Light Street Capital returned 37.3% in 2025, Bloomberg previously reported, underscoring the strength of the year for growth-oriented equity strategies.

Systematic and quantitative managers likewise delivered solid results. Singapore-based Quantedge Capital ended the year up 15.2%, while Neo Ivy Capital, founded by former Millennium Management portfolio manager Renee Yao, returned 16.5%, according to people familiar with the figures.

Industry-wide, equity hedge funds generated average returns of more than 15% through November 2025, according to data from Hedge Fund Research (HFR), marking one of the stronger years for the strategy in recent memory.