Hedge funds saw positive momentum in early 2025 with the SS&C GlobeOp Hedge Fund Performance Index posting a 0.81% gross return for January 2025, while the SS&C GlobeOp Capital Movement Index — which tracks net hedge fund inflows and redemptions —  was up 0.60% in February.

The latest capital movement data marks a sharp improvement from February 2024, when net inflows stood at just 0.08%. According to Bill Stone, Chairman and CEO of SS&C Technologies, the rise in hedge fund investments reflects increased market volatility, driven by global economic shifts such as the DeepSeek AI announcement and potential tariff increases.

“In this unpredictable environment, hedge funds — focused on delivering risk-adjusted returns across diverse strategies — are well-positioned for growth,” Stone said.

The SS&C GlobeOp Capital Movement Index now stands at 124 points, up 0.60 points from January but down 0.63 points year-over-year.