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 analysis highlights the sustained appeal of multistrategy platforms to institutional allocators.

Global Macro Leads Q3 Returns Global macro emerged as the third quarter's best performer with a 6.5% gain, followed by equities at 5.6% and multistrategy at 4.8%. While commodities and event-driven strategies have struggled throughout 2025, both managed to generate positive returns in the quarter. The sector att......................

To view our full article Click here