(HedgeCo.Net) As 2025 draws toward its close, hedge funds globally are registering one of their strongest years in recent memory — fueled by a robust equity market, favorable macro conditions, and diversified strategies coming back into favor. According to a recent report, hedge funds posted over 13% returns through October. Reuters+1

While not all strategies shared equally in that performance, many multi-strategy funds, equity-long funds, and global macro funds had especially good runs. For example, certain multi-strategy funds reportedly delivered returns close to 19.3%, while some equity-long funds returned ~17.1%. Repool+2ib.barclays+2

Technology and healthcare-themed funds were among the biggest beneficiaries in October — with healthcare-focused funds seeing one of their best months in recent memory. Reuters

Analysts attribute this strong performance to several overlapping dynamics: stable macroeconomic conditions, rising investor risk appetite (helped by strong equity markets), and a resurgence in corporate activity that’s giving event-driven funds an edge. Franklin Resources+2ib.barclays+2

The bounce-back also comes after years of consolidation and underperformance for many funds. The rally in 2025 seems to have renewed investor interest, particularly in flexible funds capable of navigating volatility and seizing opportunity.

Bottom line: For many hedge funds, 2025 is shaping up to be a comeback year — a powerful reminder of hedge funds’ potential to outperform when conditions align.