Hedge Funds See Positive Start to 2025 Amid Market Volatility

Despite uncertainty surrounding US President Donald Trump's policies and a tech market sell-off, hedge funds achieved strong returns in January 2025.

Stock Picking Funds Excel

Equity hedge funds focused on selecting individual stocks outperformed, with an average return of 2.6%, according to Goldman Sachs. This marked their best monthly performance since February 2024. Citadel's flagship Wellington fund rose 1.4%, while its other investment strategies also posted positive returns.

Systematic Equity Funds Also Strong

Systematic equity funds, which employ quantitative models, returned an average of 2.71%. AQR Capital Management's Delphi Long-Short Equity strategy gained 3.5%, benefiting from trades in developed equity markets and less risky stock selections.

Broader Market Support

The positive hedge fund returns were supported by a general rally in global stock markets. The MSCI World Stock Index reached near-record highs, as did US and European equity markets.

Multi-Strategy Funds Show Some Volatility

Winton's multi-strategy quantitative fund experienced a smaller gain of 0.3%, reflecting its broader asset class exposure and more systematic approach.

Specific Fund Performances

| Fund | January Net 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 |