Hedge funds post their best performance since 2009: stock strategies and macro themes emerge as the biggest winners

According to CNBC, entering 2026, the latest performance report of the global hedge fund industry has been released. Data shows that in 2025, hedge funds experienced their strongest annual performance in 16 years, with an overall return of 12.6%, reaching a new high since the global financial crisis. Overall, equity long/short strategies and thematic macro strategies have become the core drivers of returns.

According to industry research firm HFR, the annual gains of equity hedge funds and macro funds both exceeded 17%. These strategies capture macroeconomic changes across stocks, bonds, commodities, and currency markets, achieving excess returns in complex environments. The HFR Weighted Composite Index rose 1.56% in December 2025, making it the best year since 2009.

From the market environment perspective, 2025 was not a one-sided market. Artificial intelligence, technological upgrades, and infrastructure investments continued to boost the stock market, while fluctuations in tariff policies, adjustments in crypto assets, and phased declines in tech stocks also tested fund managers’ risk management capabilities. Overall, this high-volatility environment created more opportunities for active management strategies.

By industry, healthcare, energy, and commodities became fertile ground for returns. Stock strategy funds focused on healthcare rose 33.8% for the year, while energy and basic materials-related funds increased by 23.4%. Drug pricing reforms, progress in weight-loss therapies, and the strengthening of gold and silver prices all provided clear logic for related strategies.

Not all strategies performed well. Quantitative diversified funds declined slightly by 0.65% in 2025, mainly due to short-term volatility triggered by tariff news and tech stock sell-offs, highlighting the limitations of pure model-based strategies in extreme market conditions.

Several leading institutions performed outstandingly. Large hedge funds like Citadel and Bridgewater continued to profit from multi-strategy and macro trading; event-driven and fundamental stock picking funds also recorded double-digit or higher returns. Some funds achieved significant excess returns through long/short allocations in sectors such as defense and finance.

The impressive achievements of 2025 reflect the high diversification of the contemporary hedge fund industry. Through multiple “return engines” such as stock strategies, macro themes, and event-driven approaches, fund managers have achieved relatively independent return paths in different market environments. This trend is expected to continue into 2026.