Hedge Fund Data
Hedge fund industry performance review – August 2025
Download full report
In summary
Hedge fund performance was positive in August. The average asset-weighted hedge fund net return across all strategies was 1.50%. All master strategies delivered positive returns. The strongest performing strategy was long biased. Hedge fund performance dispersion was similar to July.
About Aurum
Aurum is an investment management firm focused on selecting hedge funds and managing fund of hedge fund portfolios for some of the world’s most sophisticated investors. Aurum also offers a range of single manager feeder funds.
Aurum’s portfolios are designed to grow and protect clients’ capital, while providing consistent uncorrelated returns. With 30 years of hedge fund investment experience, Aurum’s objective is to lower the barriers to entry enabling investors to access the world’s best hedge funds.
Aurum conducts extensive research and analysis on hedge funds and hedge fund industry trends. This research paper is designed to provide data and insights with the objective of helping investors to better understand hedge funds and their benefits.
| HEDGE FUNDS | ||
|---|---|---|
| Hedge fund composite |  | Hedge fund performance was positive in August. The average asset-weighted hedge fund net return across all strategies was 1.50%. All master strategies delivered positive returns. The strongest performing strategy was long biased. Hedge fund performance dispersion was similar to July. |
| Long-biased | | Long biased funds returned 2.88% on average in August – the best performing master strategy group in August and year-to-date. All sub-strategies had positive returns. Equity-focused sub-strategies, +3.38%, were the strongest performers. |
| Quant | | Quant funds returned 1.09% on average in August. Performance was positive for all sub-strategies. Stat arb funds had struggled since June, but started to recover at the end of July and were the strongest performing quant sub-strategy (+1.99%) in August. |
| Equity long/short | | Equity long/short funds returned 1.93% on average in August. Performance was supported by gains in the US (notably technology and healthcare sectors) and a rebound in Chinese equities. Asia/Pacific-focused funds led (+4.07%), while European L/S lagged (+0.34%). |
| Macro | | Macro funds were up 1.10% in August, supported by a weaker US dollar and commodity market volatility. All sub-strategies had positive returns, led by commodity funds (+1.91%). |
| Multi-strategy | | Multi-strategy funds gained 1.23% in August. Returns were broadly positive amid supportive intra-month equity volatility. Mid-sized managers outperformed ($2-5bn: +1.95%), while the largest funds with AUM >$5bn lagged behind smaller funds (+1.07%). |
| MARKETS | ||
|---|---|---|
| Major events | Markets in August centred on tariffs, Fed policy signals and European political uncertainty. Jackson Hole comments raised expectations of rate cuts. The US implemented 50% tariffs on goods from India. China introduced liquidity measures, while fiscal concerns in France and the UK pressured regional sentiment and added volatility. | |
| Equities | | Equities ended broadly positive, led by US small-caps and China. Early weakness from tariffs and disappointing US jobs data was offset by strong earnings and Fed expectations. Europe was mixed, with Spain resilient but France and Germany weaker. Emerging markets diverged, with Brazil strong, India hit by tariffs and Thailand softer. |
| Government bonds |
| US Treasury yields fell at shorter maturities on Fed cut expectations, while long-dated yields were steadier after strong inflation data. European markets diverged. France and the UK sold off due to fiscal and political risks, while other sovereign markets were firmer. Safe-haven demand supported global bonds at several points. |
| Corporate bonds | | Credit gained in August as risk appetite improved. US investment-grade credit was steady, while high yield recovered after early weakness. European financial paper lagged due to regional fiscal worries. Emerging market corporates advanced, with local-currency debt outperforming as the US dollar softened. Carry drove returns. |
| Currencies | The US dollar weakened on weak jobs data and dovish Fed expectations. The euro, sterling and Japanese yen strengthened. Most emerging market currencies firmed, although the Indian rupee slipped following higher US tariffs and the Turkish lira weakened after domestic policy changes. Broader sentiment reflected reduced demand for the US dollar and expectations for easing. | |
| Commodities | | Commodities were mixed. Precious metals outperformed, led by silver’s surge near 40 dollars per ounce, while gold and platinum gained and palladium slipped. Oil prices fell on ample supply before stabilising as geopolitical risks resurfaced. Natural gas declined. Coffee surged sharply, soybeans firmed and cocoa softened as supply worries eased. |
The Hedge Fund Data Engine is a proprietary database maintained by Aurum Research Limited (“ARL”). For information on index methodology, weighting and composition please refer to https://www.aurum.com/aurum-strategy-engine/. For definitions on how the Strategies and Sub-Strategies are defined please refer to https://www.aurum.com/hedge-fund-strategy-definitions/
Share this article with your network
Share with your network
