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HEDGE FUND PERFORMANCE: Strong Year-End Momentum as Industry Delivers Exceptional 2025 Returns

The hedge fund industry closed out 2025 with impressive performance, as global hedge funds delivered an average return of approximately 15% for the year, significantly outperforming major global stock market indexes. The strong showing reflects the industry's ability to navigate a complex macro environment characterized by elevated interest rates, geopolitical uncertainty, and selective market opportunities across asset classes.

According to Opalesque.com, the SS&C GlobeOp Hedge Fund Performance Index posted a 1.22% gross return for November 2025, while the Capital Movement Index advanced 0.43% in December, capping a year of consistent positive flows that pushed industry assets to new highs. The sustained performance has rekindled institutional interest in alternative strategies, particularly multi-strategy platforms and systematic approaches that have demonstrated resilience across market cycles.

Among the standout performers this year, macro, commodities, and relative value strategies led the gains. Managers benefiting from higher interest rates and increased volatility attracted fresh capital as allocators reassessed portfolio diversification needs. The macro resurgence was particularly notable, with discretionary and systematic approaches both contributing to strong returns.

Emerging market macro strategies proved especially lucrative in 2025. Greg Coffey's Kirkoswald Asset Management, which focuses predominantly on macro trades in emerging markets, gained 19.6% through November, according to sources familiar with the matter. Brevan Howard and other established macro managers......................

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