Several large hedge fund firms, including Balyasny Asset Management and Schonfeld Strategic Advisors, capitalised on the market turbulence triggered by Donald Trump’s re-election last month, positioning the industry for its best annual performance in four years, according to a report by Bloomberg.

The gains came from so-called 'Trump trades' which benefitted from sharp moves in US stocks, Treasury bonds, the dollar, and bitcoin following Trump’s election win. Investors are betting that his administration’s policies—focused on tax cuts, deregulation, and tariffs—will drive economic growth, corporate profits, and inflation.

The report cites unnamed sources familiar with the results as revealing that Balyasny posted a 3.9% gain in November, turning a previously modest year into a robust 11.6% gain for 2024, while Schonfeld's Fundamental Equity fund and Citadel’s Tactical Trading fund notched November gains that brought their year-to-date returns to 18.6% and 20%, respectively.

Macro trading strategies and stock bets were key drivers of performance for funds like Balyasny and Schonfeld, insiders revealed.

Macro-focused funds were among the biggest beneficiaries of November’s volatility. Discovery Capital Management, led by Rob Citrone, delivered a staggering 14.5% return for the month, bringing its 2024 gains to 46.5%. Chris Rokos’s hedge fund, meanwhile, which reportedly made $1bn shortly after Trump’s win, extended its gains to 28.5% for the year, while Brevan Howard’s Master Fund, which had been flat through October, rebounded to a 9% gain for 2024 after a strong showing in November.

A benchmark index tracking 70 multi-strategy hedge funds, compiled by PivotalPath, indicated that the sector is now on course for its strongest year since 2020.