Hedge Funds Thrive Amid Market Turmoil and Trump's Tariffs
Driven by market volatility and uncertainty surrounding President Trump's policies, hedge funds have experienced a positive start to 2025.
According to sources, choppier markets and a decline in tech stocks like Nvidia benefited stock picking hedge funds, which recorded an average return of 2.6% in January - their strongest performance since February 2024. Systematic equity funds also saw gains, averaging a 2.71% return.
Despite the market swings caused by Trump's announcement of tariffs, stock markets in the US and Europe reached near-record highs, as did the MSCI World Stock Index.
Notably, Citadel's flagship Wellington fund posted a 1.4% return in January, while its equity fund saw a 2.7% gain. AQR Capital Management's Delphi Long-Short Equity strategy returned 3.5% due to trades in developed equity markets and a focus on less risky stocks.
Winton's multi-strategy quantitative fund, which invests across various asset classes, finished January with a modest 0.3% return.
Hedge Fund Performance Breakdown:
| Fund Name | January Return |
| ----------- | ----------- |
| Citadel Tactical | 2.7% |
| Citadel Equities | 2.7% |
| Citadel Global Fixed Income | 1.9% |
| AQR Apex Strategy | 2.5% |
| AQR Delphi L/S Equity | 3.5% |
| Winton Multi-Strategy | 0.3% |
| Transtrend Diversified | 0.9% |
| Citadel Wellington | 1.4% |