The final numbers for 2025 are in, and they tell a tale of divergence.
While the industry enjoyed a bumper year fueled by the AI rally and “Trump Trade” volatility, a few giants separated themselves from the pack with massive alpha generation.
📊 THE 2025 LEADERBOARD (Net Returns):
The Outperformers: 🥇 Bridgewater (Pure Alpha): +34% (Highest profit year in its 50-year history). 🥈 D.E. Shaw (Oculus): +28.2%. 🥉 AQR (Apex Strategy): +19.6%.
The Strong Performers:
- D.E. Shaw (Composite): +18.5%
- AQR (Helix): +18.6%
- Point72 (Steve Cohen): +17.5%
- Balyasny: +16.7%
The Relative Laggards: Despite positive double-digit years, these giants trailed their peers, weighed down by trade policy headwinds in H1:
- Millennium: +10.5%
- Citadel (Wellington): +10.2%
🔍 MARKET DRIVERS:
- The Macro Mix: A perfect storm of AI euphoria (lifting equities) and Geopolitical Whiplash (Trump’s trade wars affecting bonds/currencies) created the ideal environment for macro and multi-strat pods.
- Capital Inflows: Bank of America reports hedge fund assets are at all-time highs entering 2026.
💡 ANALYST TAKEAWAY: 2025 proved that volatility is the lifeblood of the “Pod Shops.” Notably, Bridgewater’s 34% surge signals a definitive comeback for pure macro strategies, while D.E. Shaw’s 28% return demonstrates the power of combining quant and fundamental approaches in a dislocated market.
👇 Allocators: With the spread between top performers widening (34% vs 10%), are you rethinking your manager selection for 2026?