Smaller specialist hedge funds outperformed many of the industry's largest multistrategy firms during the first half of 2026, with equity long/short and event-driven strategies posting the strongest gains, according to a Bloomberg report. 

CastleKnight's event-driven fund returned 42.3% through the end of June, while Melqart Opportunities gained 29.1%. Asia-focused equity managers topped the performance tables, with TAL China Focus returning 95.1% and Keystone gaining 62.7%.

The strongest returns followed a broad market recovery during the second quarter after a volatile start to the year. Equity long/short managers including Whale Rock (+72.5%), FengHe Asia (+29.2%) and Coatue (+24.5%) also ranked among the leading performers.

Performance among the largest multistrategy firms was more measured. Millennium Management returned 4.1% in June, taking year-to-date gains to 10.5%, while Citadel's Wellington fund gained 1.8% during the month to finish the first half up 5.7%. Qube Research & Technologies' Torus fund remained one of the strongest-performing multistrategy vehicles, returning 18.6% through June after a 7.8% gain in the month.