Global hedge funds have delivered returns of nearly 15% for the year to the end of November 2025, outperforming several large multi-strategy hedge funds, according to a Goldman Sachs report. In November, long and short funds navigated a sharp selloff in technology stocks to post gains of 1.1%, according to Goldman. This performance surpassed major indices, including the S&P 500, which remained roughly flat for the month.
The Nasdaq Composite Index declined by over 1.5%, while the Dow climbed just over 0.3%. Goldman Sachs noted that bets on specific assets, particularly investments focused on the healthcare industry, U.S. exposure, and crowded trades, were key drivers of performance during November. The healthcare sector continued its strong run, jumping 7% in November and surging nearly 30% for the year.
Systematic and quant funds also emerged as winners in November, rising by about 3.7% and achieving their best monthly performance since March. Goldman Sachs indicated that exposure to short bets and the healthcare sector contributed to these gains. Conversely, the broader selloff in technology stocks, fuelled by fears of an AI bubble, negatively impacted technology, media, and telecom-focused (TMT) funds, which declined by 0.8% in November.
Hedge funds maintained a bullish stance on North American stocks for the third consecutive month, while European equities experienced the quickest pace of selling in seven months. Funds also continued to favour developed markets in Asia, increasing long positions in Japan and covering short positions in Hong Kong, according to Goldman Sachs. Multi-strategy hedge funds including Balyasny Asset Management, Citadel, Schonfeld and Millennium Management also posted gains in November.
