Hedge funds posted average returns of 1.3% in September, with managers in Europe, Asia and the Middle East generally outperforming their North American peers, according to a report by Reuters citing a JPMorgan client note.

Global equities rose 3.4% during the month, while developed market sovereign bonds advanced 0.7%. Positioning in US equities was described as “somewhat bullish,” with crowding in the so-called “Magnificent Seven” tech stocks — including Apple, Amazon and Nvidia — remaining near record levels.

European stock-pickers leaned positive, but multi-strategy and quant funds in the region took more defensive stances. In Asia, despite rising equities, hedge funds were more inclined to short than go long.

Performance highlights included Ray Dalio’s Bridgewater Associates, whose $92.1bn Pure Alpha fund gained 6% in September, bringing year-to-date returns to 26.2%. Other Bridgewater strategies also impressed, with Asia Total Return up 32.5% year-to-date.

Marshall Wace’s flagship Eureka Fund advanced 1.32% in September, lifting year-to-date gains to 8.04%, while its Market Neutral Tops fund added 0.45%, bringing 2025 gains to 13.66%. Systematic equity strategies more broadly have returned over 13% year-to-date, according to Goldman Sachs.

Multi-strategy firms were broadly flat, though Balyasny Asset Management stood out with a 1.3% September gain, extending its 2025 performance to 10%.

The latest results underline a divergent landscape across hedge fund strategies, with macro heavyweights and systematic equity managers leading gains, while multi-strategy platforms remain more subdued.