Hedge funds posted encouraging results for the first half of 2025, overcoming market turbulence tied to US trade policy uncertainty and capitalising on surging equity markets, according to a report by Reuters citing new data from Goldman Sachs.
Stock-picking hedge funds gained more than 3% in June, pushing year-to-date returns above 6%, while systematic equity strategies saw a rare setback, falling 0.68% in June, but still boast a strong 11.91% gain for the year so far.
Major indices, including the S&P 500 and Nasdaq, ended June at record highs, providing a tailwind for fundamental managers. Systematic managers struggled with losses in consumer discretionary stocks and crowded short trades, marking their first monthly loss in eight months, Goldman’s prime brokerage note revealed.
The standout performers include Schonfeld Strategic Partners, which returned 1.1% in June, with 6% gains year-to-date, Bridgewater Associates’ Pure Alpha 18% Volatility Fund, which delivered an impressive 17% for the first half, and Marshall Wace's Market Neutral TOPS fund, which reported a 0.38% gain in taking H1 returns to 11.23%. The firm's Eureka fund, meanwhile, added 5.35% in June, and is up 4.47% YTD.
Equity rally drivers included strength in technology stocks and strategies focused on volatility trading, while healthcare exposures detracted from performance.
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