Hedge Fund Data
Hedge fund industry performance review – September 2025
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In summary
Hedge fund performance was positive in September. The average asset-weighted hedge fund net return across all strategies was 1.66%. All master strategies delivered positive returns. The strongest performing strategy was equity long/short. Hedge fund performance dispersion was slightly broader than in August.
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| HEDGE FUNDS | ||
|---|---|---|
| Hedge fund composite |  | Hedge fund performance was positive in September. The average asset-weighted hedge fund net return across all strategies was 1.66%. All master strategies delivered positive returns. The strongest performing strategy was equity long/short. Hedge fund performance dispersion was slightly broader than in August. |
| Long-biased | | Long biased funds returned 1.97% on average in September – the second-best performing master strategy group during the month and the strongest year-to-date. All sub-strategies had positive returns ranging from long biased – commodities, up 1.53% to long biased – other, up 4.27%. |
| Quant | | Quant funds returned 1.80% on average in September. Sub-strategy returns varied. Stat arb funds (which have had a volatile year so far) were the weakest performing sub-strategy during the month, -2.45%. CTAs were the strongest performing sub-strategy, up 3.11%. |
| Equity long/short | | Equity long/short funds returned 2.58% on average in September. All sub-strategies had positive returns during the month, ranging from US long/short, up 0.63% to sector-focused funds, up 4.61%. |
| Macro | | Macro funds were up 1.28% in September, supported by a weak US dollar and commodity market volatility. All sub-strategies had positive returns, with the strongest performance from global macro funds, up 1.88%. |
| Multi-strategy | | Multi-strategy funds gained 1.28% in September. The smallest size funds outperformed (<$0.5bn: +2.42%), while the largest funds with AUM >$5bn lagged behind (+1.06%). |
| MARKETS | ||
|---|---|---|
| Major events | Market returns in September 2025 were driven by optimism around Fed rate cuts, strong AI-related equity gains, and a broad risk-on sentiment supporting credit markets. Precious metals rallied amid geopolitical and trade tensions, while oil weakened on OPEC+ supply expectations. Currency and bond movements reflected shifting rate outlooks and fiscal concerns in Europe. | |
| Equities | | Global equities advanced in September, led by strong gains in US growth and technology stocks amid optimism around rate cuts and AI momentum. European and Japanese markets also strengthened, supported by tech and policy developments. Emerging markets rallied sharply, driven by Chinese equities, which benefited from a supportive policy environment and optimism around US/China relations following progress on the TikTok ownership agreement. |
| Government bonds | | Government bond performance was mixed in September. US yields fell early in the month as softer labour data reinforced expectations of a rate cut, before rebounding modestly. European yields initially spiked on fiscal and debt concerns but eased after month-end reassessments, while Japanese and Chinese yields edged higher amid domestic economic and policy factors. |
| Corporate bonds | | Corporate bonds performed positively in September, supported by improved risk sentiment following softer US labour data and the subsequent Fed rate cut. Investment grade credit led gains, while high yield, whilst still positive, lagged behind. Emerging market sovereign and corporate bonds also advanced, with most gains concentrated early in the month. |
| Currencies | Currency markets were mixed in September. The US dollar ended the month flat despite intra-month swings which were driven by softer labour data, a Fed rate cut, and stronger GDP growth. The euro and Swiss franc appreciated modestly, while sterling weakened. Most emerging market currencies declined following local rate cuts and political or economic uncertainty, though the Chinese yuan posted slight gains. | |
| Commodities |  | Precious metals led commodity gains in September, with gold and silver reaching record highs amid US dollar weakness, geopolitical uncertainty, and strong central bank demand. Industrial metals also advanced, supported by supply disruptions and trade concerns. In contrast, oil prices edged lower despite new sanctions on Russia, while most agricultural commodities declined as supply pressures 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/
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