``` Hedge Fund Leaderboard 2025: Bridgewater's flagship fund achieves a record 34% return; Bridgewater China ranks third, surpassing D.E. Shaw. ```

``` Hedge Fund Leaderboard 2025: Bridgewater's flagship fund achieves a record 34% return; Bridgewater China ranks third, surpassing D.E. Shaw. ```

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The global hedge fund industry in 2025 delivered its strongest performance in at least five years, as market volatility sparked by the Trump administration’s trade war created rich opportunities for traders.

On Friday, January 2, Eastern Time, media outlets reported that the overall return rate for hedge funds in 2025 reached the highest level in at least five years. Bridgewater Associates, the world’s largest hedge fund, saw its flagship fund Pure Alpha II post a record return of 34%, dispelling the sluggish annual returns of less than 3% from 2012 to 2024. D.E. Shaw’s flagship strategy fund also performed well, while Melqart Opportunities Fund took the top spot with a return rate of 45%.

Reportedly, under the leadership of current CEO Nir Bar Dea, Bridgewater recorded its highest annual profit in 50 years. In addition to Pure Alpha II, Bridgewater’s China Macro Fund and All Weather Strategy Fund also achieved returns of 34% and 20%, respectively. D.E. Shaw’s flagship multi-strategy composite fund D.E. Shaw Composite grew by 18.5%, and its Oculus fund reached an impressive return rate of 28.2%.

Commentators believe that the strong performance of hedge funds is mainly due to the sharp rise in US stocks driven by artificial intelligence (AI) themes, as well as dramatic fluctuations in the bond and currency markets triggered by the Trump trade war. In 2025, the three major US stock indexes posted double-digit annual gains for the third consecutive year, a situation previously seen during 2019 to 2021.

As seen in the chart below, preliminary media statistics show that of 25 major hedge funds, slightly more than half—14 funds—outperformed the S&P 500 Index, which rose 16.7%; but only seven exceeded the Nasdaq, which rose about 20.4%, three of which came from Bridgewater. Additionally, media reported Friday that Citadel’s flagship hedge fund Wellington posted a 10.2% return for the year. If confirmed, that means Ken Griffin’s fund also failed to beat the market.

Macro Strategy Funds Shine

Several Bridgewater funds achieved breakthrough results in 2025.

This Thursday, media outlets quoted sources saying that as of December 29, Bridgewater’s flagship Pure Alpha II fund delivered a full-year return of about 33% to 34%, clearly outperforming the S&P 500 during the same period. As a global macro fund, this fund typically invests in stocks, bonds, currencies, and commodities.

Statistics published Friday show that Bridgewater’s Asia Total Return Fund performed even better, posting a return rate of 37%, ranking second among 25 major hedge funds. Bridgewater’s China Total Return Fund also delivered a 34% gain, matching the flagship fund. The All Weather fund, using a risk parity strategy, delivered a 20% return.

As of September 30, Bridgewater had about $92 billion in assets under management.

According to Thursday’s report, Bridgewater has been actively developing new strategies in recent years, including a $5 billion fund, AIA Macro, which uses AI for investment decisions and delivered a 11.9% return during the same period. In 2024, the company launched the "Artificial Investor" tool, a move that traces back to co–Chief Investment Officer Greg Jensen hiring Chief Scientist Jas Sekhon in 2018.

Event-Driven Funds Lead the Pack

The event-driven fund Melqart Opportunities Fund, managed by Michel Massoud, took the top spot with a 45.1% return rate. Media sources say this achievement made it one of the best-performing hedge funds of 2025.

Event-driven strategies profit by capturing investment opportunities from corporate mergers, restructuring, and other special events. In an environment of increasing trade policy uncertainty, the flexibility of such funds became particularly evident.

Kite Lake Special Opportunities, also an event-driven fund, posted a return rate of 17.9%, placing it in the mid-range of the industry.

Multi-Strategy Funds See Divergent Results

Both of D.E. Shaw’s flagship funds outperformed their market benchmarks. Reportedly, since its founding in 2004, the Oculus fund has never had a year of negative returns; in 2025, its net return was about 28.2%, with an annualized net return of 14.4%. The larger Composite fund delivered a net return of about 18.5%; since its inception in 2001, it has had an annualized net return of 12.9%, with only one year of losses.

As of December 1, 2025, D.E. Shaw, founded in 1988, managed more than $85 billion in assets, covering hedge funds, private markets, multi-asset classes, and active equity investment strategies.

Other multi-strategy funds showed mixed results.

In 2025, Dymon reported an 18.1% return, ExodusPoint’s return rate was 18.04%—the best since its founding in 2017—and Balyasny achieved 16.7%. But industry giants Millennium only delivered a 10.5% return, and Citadel’s Wellington likewise failed to beat the S&P 500 index. Walleye, Pinpoint Multi-Strategy, and New Holland Tactical Alpha posted return rates of 15.5%, 11.6%, and 9.8%, respectively.

Equity Strategies Show Significant Differences

Equity long/short funds performed with great divergence. Soroban Opportunities achieved a strong return of 25%, greatly outperforming the benchmark. As an equity strategy fund, Anson Investments Master grew 21.2%.

Schoenfeld’s Fundamental Equity fund grew by 16.5%, just below the S&P 500 index, while its multi-strategy fund Strategic Partners returned 12.5%. Marshall Wace’s Eureka/equity long-short strategy grew by 11.6%, and FIFTHDELTA’s equity fund posted a return rate of 10.3%.

Quantitative strategy fund Winton’s multi-strategy return rate was 7.4%, the lowest among the 25 funds included in the statistics.

According to reports Friday, the multi-strategy Apex Strategy by billionaire investor Cliff Asness’s AQR Capital Management posted an annual gain of 19.6%, and the alternative trend-following Helix Strategy grew 18.6%.

Market volatility created arbitrage opportunities for actively managed funds. D.E. Shaw pointed out in a research report published earlier last year that there is a "supply-demand imbalance" in the cost of tools used by investors to hold S&P 500 constituent stocks. This structural opportunity was amplified by market turmoil under Trump’s policies.

Risk DisclaimerMarkets are risky, investment requires caution. This article does not constitute personal investment advice and does not take into account the specific investment objectives, financial situation, or needs of any individual user. Users should consider whether any opinions, views, or conclusions in this article are appropriate to their particular circumstances. Investments made based on this article are at your own risk. ```