In February 4th news from Reuters, it was reported that hedge funds began 2025 amidst market turbulence influenced by uncertainty surrounding the policies of the new U.S. President and a drop in Nvidia due to the emergence of Chinese AI startup DeepSeek.
Among notable performances, Bridgewater Associates, a prominent hedge fund, achieved an 8.2% gain in its macro strategy last month, surpassing major stock indexes.
Market fluctuations at the beginning of the week were exacerbated by anticipations of Trump's forthcoming announcement, which triggered concerns about the initiation of a potential trade conflict.
Despite the ensuing instability, hedge funds focusing on individual company performance saw a 2.6% average return, the highest since February 2024, supported by a broader market uptrend.
In the tech sector, SoMa Equity Partners surged by 4.73% in January, benefitting from strategic investments in companies such as Roblox, Wix, Uber Technologies, and Elastic. Similarly, Shannon River reported a rise of 2.46%, as indicated by preliminary data from two sources.
Systematic equity funds also performed well, returning an average of 2.71%, as per Goldman Sachs.
Stock markets in the U.S. and Europe closed January at near-record levels, alongside MSCI's World Stock Index.
Various hedge fund strategies showed positive results, with Third Point's flagship TP offshore fund, managed by Daniel Loeb, increasing by 3.3%.
Citadel's equity fund achieved a 2.7% return, while its Wellington fund rose by 1.4% in January. All of Citadel's investment strategies demonstrated growth last month.
AQR Capital Management's Delphi Long-Short Equity strategy, overseen by billionaire investor Cliff Asness, yielded a net return of 3.5% in January, leveraging trades in developed equity markets and selecting less volatile stocks.
Winton's multi-strategy quantitative fund ended January with a 0.3% increase, focusing on systematic trading across diverse asset classes.