Leading hedge funds reported substantial gains in 2025, capitalising on market volatility fuelled by trade tensions. Bridgewater Associates’ Pure Alpha II macro fund achieved a record 34 per cent return, while its All Weather strategy rose 20 per cent. Bridgewater Associates is a global investment management firm known for its macroeconomic analysis and quantitative investment strategies. D. E. Shaw & Co. is a global investment and technology development firm; its flagship Composite hedge fund gained 18.5 per cent, and Oculus made an estimated 28.2 per cent.
Other notable performers included Michel Massoud’s Melqart Opportunities Fund, which surged 45 per cent. Millennium Management, a multi-strategy hedge fund firm managing $US83.5 billion, saw a 10.5 per cent increase. ExodusPoint, with approximately $US12 billion under management, gained 18 per cent, marking its best year since its founding in 2017. ExodusPoint has been expanding its equities group to complement its fixed-income operations.
Citadel’s flagship hedge fund also experienced growth, posting a 10.2 per cent increase. This performance underscores a generally positive year for hedge funds, with industry returns projected to be the strongest in at least five years. Surging US stocks, precious metals, and increased volatility in bond and currency markets contributed to the favourable environment for these firms.
The strong performance across the hedge fund industry reflects the ability of skilled traders to navigate and profit from the complex and unpredictable market conditions of 2025.
