Hedge fund performance gains accelerated through February, again driven by Macro and Equity Hedge funds, as complex risks evolved throughout the month, according to HFR.
HFRI writes that hedge fund performance accelerated in January driven by strong gains across Macro and Equity Hedge funds, as managers navigated volatile and shifting market cycles, including intense volatility in the commodity sector spurred by evolving geopolitical and macroeconomic uncertainty.
HFR writes that the total global hedge fund industry capital surged above the historic USD5 trillion milestone for the first time, with capital jumping for the ninth consecutive quarter in 4Q25 to end the year at a record USD5.15 trillion.
HFR writes that new hedge fund launches accelerated into year-end while liquidations remained near historic lows, as investors positioned for evolving geopolitical risk, strong economic growth, and uncertainty about inflation heading into 2026.
HFR writes that hedge fund performance accelerated in December to conclude a strong 2025, driven by gains across Macro and Equity Hedge funds, as risks and opportunities evolved into the new year across geopolitical, energy, AI/technology and cryptocurrency markets.
HFR writes that Asian and Emerging Markets hedge fund performance accelerated into 4Q25, navigating a sharp correction in cryptocurrencies which was offset by a powerful combination of factors including expectations for falling interest rates, improving global economic outlook, progress on trade/tariff negotiations and optimism over near-term resolution of ongoing military geopolitical conflicts.
Once the province solely of institutions with considerable heft, hedge funds are evolving to address new investor dynamics as they face continued scrutiny, according to The Cerulli Edge—The Americas Asset and Wealth Management Edition.
Further Asset Management, a UAE based digital asset investment manager, in partnership with 3iQ Corp, a global pioneer in digital asset investment solutions, have announced the launch of the Further x 3iQ Alpha Digital (“the Fund”) a market-neutral, multi-strategy hedge fund offering risk-managed exposure to digital assets, including a dedicated bitcoin share class.
Hedge funds extended performance gains in October despite an increase in technology and tariff volatility, with the HFRI Fund Weighted Composite Index advancing for the sixth consecutive month led by Macro and Healthcare focused funds, as reported today by HFR.
PwC, in conjunction with the Alternative Investment Management Association (AIMA), have published the findings of their recent survey which finds that hedge funds’ exposure to crypto assets has grown with 55 per cent of funds now invested in 2025, up from 47 per cent in 2024.
