Hedge funds are on track for a banner year - but 2 charts show one group of money managers is the industry darling

"In a year rife with macroeconomic and geopolitical uncertainty, hedge funds are cruising toward the industry's strongest annual showing since the pandemic era. Through three quarters, hedge funds have gained 16.6% on average and pulled in more than $40 billion in net inflows from investors, according to new data from fund administrator Citco. The industry is on pace for its best year since 2020 following a 5.2% weighted average gain in the third quarter, with each major strategy and 80% of funds posting positive returns, Citco reported this week."

"Multistrategy funds - which, as the name suggests, place bets across a diversified array of investment strategies - have performed particularly well in 2025, gaining 19.3% on average, followed by equities funds at 17.1% and global macro funds at 15.8%. Two of the largest multistrats, however, are having modest years by their standards and underperforming peers. Citadel, which manages $69 billion, was up 5% through September while Millennium, which manages $79 billion, was up 6%."

"Global macro was the best performer in Q3, with a 6.5% gain, followed by equities at 5.6% and multistrategy at 4.8%. Commodities and event-driven strategies have struggled in 2025, but both managed to eke out gains in the quarter. Investors continue to flock to multistrats, which have taken in an overwhelming majority of the industry's investment inflows, accounting for $30 billion of the $41.3 billion in net inflows in 2025."

Through three quarters of 2025, hedge funds gained 16.6% on average and attracted over $40 billion in net inflows. The industry recorded a 5.2% weighted average gain in Q3, with each major strategy and 80% of funds posting positive returns. Multistrategy funds led performance, returning 19.3% on average, followed by equities at 17.1% and global macro at 15.8%. Two large multistrategy managers posted more modest gains of roughly 5%–6%. Global macro outperformed in Q3, and multistrategy vehicles captured the majority of investor inflows.

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