Hedge Fund Data
Hedge fund industry performance review – June 2025
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In summary
Hedge fund performance was positive in June. The average asset-weighted hedge fund net return across all strategies was 1.68%. All master strategies delivered positive returns with the exception of arbitrage. The strongest performing strategy was long biased. Hedge fund performance dispersion narrowed slightly compared to May.
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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 June. The average asset-weighted hedge fund net return across all strategies was 1.68%. All master strategies delivered positive returns with the exception of arbitrage. The strongest performing strategy was long biased. Hedge fund performance dispersion narrowed slightly compared to May. |
| Long-biased | | Long biased funds posted the strongest performance among master strategies, returning 3.16% on average. Equity-focused sub-strategies led gains, supported by a robust rally in global equities. Other sub-strategy returns were more muted, but all were positive. |
| Quant | | Quant funds returned 0.19% on average in June. Sub-strategy performance was generally positive, with the exception of quant – multi-strategy and statistical arbitrage. These sub-strategies struggled in the flat equity markets in the first three weeks of June. |
| Equity long/short | | Equity long/short funds gained 2.84% in June. Sector-focused and Asia Pacific long/short sub-strategies were strong contributors, up 4.19% and 2.86%, respectively. FEMN and US-focused sub-strategies also advanced, though to a lesser extent. |
| Macro | | Macro strategies returned 1.33% on average in June. Macro emerging markets strategies notably outperformed other macro sub-strategies. The weakest performance (albeit still positive) came from macro – commodities strategies, which struggled with the volatility in oil prices around the Israel/Iran 12-day conflict. |
| Multi-strategy | | Multi-strategy funds returned 1.25% on average in June. All AUM groups posted positive returns, with the strongest performance from small and mid-sized funds (<$1bn). The largest funds (>$5bn) returned 1.25%, while small-to-medium funds ($0.5-1bn) returned 2.27%. |
| MARKETS | ||
|---|---|---|
| Major events | Markets rallied in June, lifted by a US-China trade deal and a Middle East ceasefire, boosting global risk appetite. Gains were strongest in tech and Asian equities; Europe lagged on US trade tensions. US Treasury yields fell on Fed cut hopes, while European yields rose amid ECB hawkishness. Commodities climbed, led by platinum and oil, as a weaker dollar and geopolitical unrest supported prices. | |
| Equities | | Equities ended mostly higher in June, lifted by easing geopolitical tensions and renewed trade optimism. US stocks gained steadily, with tech leading the rally, while Chinese and Korean markets surged on the US-China trade deal and political stability. European equities lagged amid tariff uncertainties and regional political noise, though UK mid-caps outperformed. |
| Government bonds | | US Treasury yields fell as investors priced in a potential Fed rate cut, despite mixed economic data and sticky inflation prints. European bond yields broadly rose following the ECB’s rate cut and signals of a pause in easing, while UK gilt yields declined on soft labour data. Japanese and Chinese government bond yields also edged lower. |
| Corporate bonds | | US corporate bonds gained across the credit spectrum, supported by improved sentiment following the US-China trade deal and Middle East ceasefire. Non-investment grade indices rebounded late in the month, while investment-grade credit benefited from stable rates and a risk-on backdrop. EM credit advanced, aided by broad US dollar weakness and resilient demand. |
| Currencies | The US dollar weakened further in June amid growth concerns and trade uncertainty, despite brief support from steady Fed projections. The euro and Swiss franc gained, buoyed by hawkish central bank signals, while EM currencies broadly advanced. The Korean won also strengthened on political stability and positive risk sentiment. | |
| Commodities | | Oil prices rose mid-month on Middle East conflict but gave back some gains as tensions eased. Precious metals rallied, led by a surge in platinum, while gold was little changed. Base metals advanced, with copper and aluminium up on supply concerns. Agricultural commodities were mixed; coffee and sugar declined on oversupply. |
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/
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