The biggest hedge funds added to their gains in June, sailing through the first half of the year amid global market chaos sparked by president Donald Trump’s tariffs and the Israel-Iran war.
Schonfeld’s Fundamental Equity fund rose 2.5% last month, while the firm’s flagship multistrat hedge fund Strategic Partners advanced 1.1%, according to people with knowledge of the matter.
Balyasny gained 2.4%, while Marshall Wace’s US$26 billion ($33.1 billion) Eureka hedge fund soared 6% in June through last Friday, erasing all prior losses in the year, the people said, asking not to be identified discussing private information.
Dymon’s multistrategy money pool gained 2%, cementing its position as one of the best-performing hedge funds during the first half. Citadel’s flagship Wellington fund added 1.7% in June.
The results burnish hedge funds’ image as volatility dampeners during violent movements in certain asset classes.
The S&P 500 index, for example, fell almost 20% between mid-February and mid-April, before rebounding to reach an all-time high by the end of June.
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Oil prices spiked during the Israel-Iran conflict last month, but quickly fell back following a truce.
“This year’s market volatility and tariff chaos led to generally better returns for the hedge fund industry, except for trend followers that suffered due to tough macro conditions,” said Roger Hilty, a partner at LGT Capital Partners. “Machine learning hedge funds were star performers, while stock-pickers and credit-focused managers benefited from market dispersion.”
Marshall Wace’s Eureka fund enjoyed one of its best-ever monthly gains, aided by its early-stage bet on Circle Internet Group Inc.
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Multistrats generally rode out the market swings that followed various US tariff announcements and pauses, keeping their losses to a minimum.
And as markets settled, returns have improved and many are on track to match long-term averages for multistrats.
“They have generally navigated well through another difficult cycle,” said Jon Caplis, head of hedge fund research firm PivotalPath.
Representatives for all the investment firms declined to comment.
The results are preliminary and include multistrats and other types of hedge funds:
