Hedge Funds on Track for Best Year Since 2020 The hedge fund industry is experiencing its strongest annual performance since 2020, with funds gaining 16.6% on average through the third quarter of 2025 and attracting more than $40 billion in net inflows from investors, according to fund administrator Citco. The third quarter delivered a 5.2% weighted average gain, with each major strategy and 80% of funds posting positive returns. As reported by Opalesque's Industry Updates, global hedge fund capital has reached nearly $5 trillion, marking an eighth consecutive quarterly rise.

Multistrategy Funds Lead Performance Multistrategy funds have emerged as the standout performers in 2025, gaining 19.3% on average, followed by equity funds at 17.1% and global macro funds at 15.8%. However, industry giants Citadel and Millennium are having modest years by their standards, with gains of 5% and 6% respectively through September. The strategy continues to dominate flows, pulling in $30 billion of the $41.3 billion in net inflows this year, with $18 billion added in the third quarter alone. Opalesque's analysi......................

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