Hedge funds capped October with steady gains, advancing +1.75% on average and bringing year-to-date returns to +13%, according to a new report by Goldman Sachs and sources close to several leading managers.
While hedge fund stock pickers underperformed the S&P 500’s +2.3% rise, their diversified exposures — particularly in healthcare and technology — supported overall resilience amid volatile trading conditions.
🔹 Strategy Breakdown
- Stock-Picking Funds: +1.75% in October — strong, but shy of benchmark gains.
- Macro & Systematic Funds: Broadly outperformed, aided by tactical positioning.
- Multi-Strategy Giants:
- Citadel, Millennium Management, and Balyasny Asset Management all posted positive returns, extending strong year-to-date momentum.
However, large U.S. and China bets — particularly those leveraged on size — tempered gains for both discretionary and quantitative strategies.
“Trades wagered at a bigger size in the U.S. and China resulted in pockets of drawdown, but systematic diversification continues to anchor returns,” Goldman noted.
🔹 Sector Insights
- Tech, Media & Telecom (TMT) funds led October with +2.1%.
- Healthcare-focused funds gained +8.4%, marking their fifth straight positive month.
- Systematic equity funds and macro-driven quant strategies continue to outperform peers in 2025.
🔹 The Bigger Picture
With global hedge fund assets near $5 trillion and new capital inflows hitting multi-year highs, 2025 is shaping into one of the strongest years for the alternative investment industry since before 2008.
As dispersion widens, multi-strategy resilience and disciplined risk management remain the defining edge of top-tier funds.