Summary
Hedge funds achieved an average return of 1.3% in September 2025, with managers in Europe, Asia, and the Middle East outperforming their North American counterparts. Bridgewater's Pure Alpha led with a notable 26% year-to-date return, while Marshall Wace’s Eureka Fund and Market Neutral Tops Fund also posted strong results. Systematic stock-trading hedge funds reported more than 13% year-to-date gains. The discussion included regional strategies, performance highlights, and trends in equity positioning.
Action Items
(No actionable items were identified in this article.)
Overall Hedge Fund Performance
- Hedge funds delivered a 1.3% average return in September 2025, according to a JPMorgan client note.
- Managers in Europe, Asia, and the Middle East outperformed North American peers.
- Global equities rose 3.4% and developed market sovereign bonds increased 0.7% during September.
Regional Positioning and Strategy Trends
- U.S. hedge fund positioning in equities was "somewhat bullish," expecting further market rises.
- "Crowding" in major tech stocks—Apple, Amazon, Nvidia, and others—remained near historical highs.
- European stock-pickers mostly bet on rising equities, but multi-strategy and quantitative funds generally anticipated declines.
- Asian hedge funds maintained more bets on falling stocks despite rising regional equity markets.
Notable Fund Performances
- Bridgewater's Pure Alpha fund returned 6% in September, totaling 26.2% year-to-date; its Asia Total Return, All Weather, and China Total Return funds posted 32.5%, 15.3%, and 28.4% year-to-date, respectively.
- Marshall Wace’s Eureka Fund rose 1.32% in September and is up 8.04% for the year; its Market Neutral Tops fund gained 0.45% in September and 13.66% year-to-date.
- Systematic stock-trading hedge funds, including Marshall Wace, have returned over 13% for the year according to Goldman Sachs.
- Multi-strategy funds were mostly flat in September except for Balyasny Asset Management, which posted a 1.3% monthly gain and a 10% year-to-date return.
Decisions
- No decisions were identified in this article.
Open Questions / Follow-Ups