HFR writes that emerging markets’ hedge fund performance accelerated into 2H25, led 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.
HFRI writes that hedge funds extended strong 1H gains to begin the second half of the year, with leadership accelerating from directional Event Driven and Equity Hedge, which was driven by an improving outlook for M&A, trade negotiations, and overall economic outlook into 2H25
HFR writes that total global hedge fund capital surged to a record level in 2Q 2025 as hedge funds successfully navigated the violent volatility to begin the quarter, with the risk environment evolving rapidly through quarter-end towards the passage of US budget legislation, improved 2H economic outlook, progress on trade and tariffs, and moderation of geopolitical risks.
Led by directional Equity Hedge and Event Driven strategies, hedge funds posted their strongest monthly gain since December 2023 in June to conclude 1H25, as reported today by HFR.
HFR writes that Emerging Markets hedge funds surged in May and posted strong YTD gains through May 2025 as global geopolitical and, specifically, regional Middle East tensions escalated into military conflict, impacting a wide range of energy, shipping and trade.
Event Driven, Equity Hedge and Cryptocurrency strategies led performance gains among hedge funds in May, as reported today by HFR.
IG Prime writes that 70 per cent of hedge funds now invest in private markets. Investor demand for hedge funds to improve their returns has led to more of them to invest in a wider array of alternatives such as private credit, private equity and private real estate as some of the more “traditional” hedge fund strategies have failed to deliver over the last few years.
IQ-EQ has announced the strategic acquisition of South Watch LLC, a boutique provider of comprehensive fund administration, outsourced CFO support, and tax preparation services to hedge fund managers in the United States and Cayman Islands.
Institutional investors are rotating towards private debt, infrastructure, and diversifying hedge fund strategies as geopolitical and macroeconomic pressures continue to drive selective risk-taking, according to the latest quarterly Manager Intelligence and Market Trends report from bfinance.
Hedge funds navigated a historic volatility surge and violent extremes in risk sentiment, as global financial markets plunged in early April on trade and tariff uncertainty before posting an equally historic and dramatic recovery from the intra-month decline, with most equity indices ending the month with de minimis changes over the prior month, says HFR.
