Hedge funds recorded their eighth successive quarter of positive returns in Q3 2024, with funds achieving an overall weighted average return of 3.22%, a 1.09% increase on Q2, according to a new report from Citco.

As of the end of September, the overall weighted average return YTD for funds administered by the Citco group of companies was 11.03%, with 83% of funds in positive territory. The medium return for the quarter came in at 9.38%, below the weighted average return, which suggests larger funds outperformed smaller ones.

Global Macro funds achieved the highest weighted average return in Q3, at 5.25%, to give them a YTD weighted average return of 12.11%.

Equity strategies meanwhile had another quarter of gains, at 3.79%, resulting in a weighted average return YTD of 15.14%, making them the top performer for the year so far, while Fixed Income Arbitrage funds came in at 4.09%, taking them to 5.48% YTD.

Multi-Strategy funds hit 2.63% for Q3, with 8.56% for YTD, and Event Driven landed on 1.86% Q3, coming to 6.18% YTD.

The outliers — commodities strategies — achieved a weighted average return of -2.15%, however, they remain positive YTD at 1.44%.

In terms of assets under administration (AUA), funds of all sizes were positive in Q3 2024, with those in the $1bn to $3bn range achieving the highest weighted average return of 5.34%.

They were closely followed by funds with $500m to $1bn, with a weighted return of 3.51%, and funds with $200m to $500m, at 3.08%, indicating solid performance among mid-sized funds.

Dollar-wise, hedge funds saw net inflows of $1.1bn, with September’s outflows outweighed by July ($4.2bn) and August’s ($3.1bn) positive inflows. Funds in Europe ($2.8bn) and the Americas ($0.1bn) both saw positive net inflows in Q3.

Citco reports that, overall, Q3 trade volume trends were marked by periodic surges in activity – driven by volatility and anticipation of interest rate moves. High-frequency strategies continued to play a significant role, while equities and equity swaps remained major contributors to overall volume.