– Hedge funds experienced their strongest inflows in the first half of 2025 since 2015, driven by increasing demand in turbulent markets and the impact of new U.S. trade policies under President Donald Trump. According to data from HFR, hedge funds saw an impressive $37.3 billion in inflows during the first half of the year, a significant jump from $7.2 billion in the same period in 2024.
– Of the total inflows, around $30 billion were directed into hedge funds managing over $5 billion in assets, reflecting institutional confidence in larger funds. Despite the S&P 500’s 5.5% rise and a record-high close in the first half, hedge funds posted an average return of 3.88%, demonstrating their ability to deliver solid performance in volatile market conditions.
– Notably, some funds delivered even more impressive gains. Bridgewater Associates’ flagship fund saw a 17% return, Rokos Capital Management rose by 12.26%, and Caxton Associates posted a 14% return.
– As of June 2025, hedge funds collectively managed $4.74 trillion in assets, driven by both the strong inflows and positive returns. Kenneth J. Heinz, president of HFR, anticipates that institutional allocations will continue to expand in the second half of the year, particularly toward funds that have shown resilience and strong, uncorrelated performance during the market disruptions of early 2025.
