Hedge funds generated positive performance during Q1 2025, up 0.7%, outperforming equities but underperforming bonds. On an asset-weighted basis, quant was the top strategy for Q1, returning 2.4%; however, equally weighted performance was much lower at 0.1%. There was broad dispersion in quant sub-strategy returns.
Equity L/S was the only strategy with negative returns at -1.7%, generally dragged down by equities market performance during Q1. The best-performing strategies in 2024 (multi-strategy and equity L/S) were the weakest performing in Q1 2025.
Similarly, the weakest performing strategies in 2024 (arbitrage, quant and macro) were the strongest performers in Q1 2025.
Industry AUM grew over the quarter, with positive investment returns offsetting net outflows.
Explore the U.S. macroeconomic landscape as hedge funds deliver varied but resilient performances in Q1 2025.
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