(HedgeCo.Net) While individual funds stand out, it’s helpful to view the wider hedge?fund industry in 2025. According to fund administrator Citco, hedge funds are on track for their best year since 2020—averaging about 16.6 % return through three quarters of 2025. IndexBox+1
Breaking it down by strategy:

Multi-strategy funds are leading with ~19.3 % average returns. IndexBox+1

Equity hedge funds are next at ~17.1 %. IndexBox+1

Global macro funds are achieving ~15.8 % on average. IndexBox+1

Inflows are also strong: Multi-strategy funds drew ~US $30 billion of the ~US $41.3 billion total hedge-fund net inflows in 2025 through September. IndexBox+1

What this means: The environment in 2025—characterised by macro uncertainty, changing policy regimes, and sector rotation—has benefited hedge funds that can flex across strategies rather than those rigidly tied to one approach.

For investors, this snapshot provides context: while standout funds like TCI or High Ground produce exceptional returns, the broader industry average is still considerable and may act as a baseline benchmark. It also suggests that allocation to hedge funds remains appealing in an era of increased correlation among traditional assets.

However, caution is warranted: large hedge funds such as Citadel and Millennium Management have only delivered 5 % and 6 % YTD respectively (through September), according to the same data. IndexBox+1 This underlines the dispersion of results and the fact that “size doesn’t guarantee high performance” in hedge funds.

Looking ahead: Can hedge funds sustain this strong run into year-end? Will multi-strategy dominance hold, or will equities or macro reclaim the lead? And will the surge in inflows persist without diluting returns? These are key questions for allocators and industry watchers in the coming months.