Top hedge funds led by DEShaw, Bridgewater and Balyasny see big gains in 2025

Major multi-manager funds including DE Shaw, Balyasny Asset Management, Bridgewater Associates and Point72 Asset Management largely generated double-digit gains in 2025, reflecting a positive year for the hedge fund industry, which was buoyed by an AI-powered stock market rally. DE Shaw’s two flagship funds produced double-digit returns, a source familiar with the matter told Reuters on Friday, mirroring similar gains seen among the top multi-strategy peers during a year of record volatility.

The company’s Oculus Fund generated a net return of about 28.2% this year and has delivered an annualized net return of 14.4% since its inception in 2004, the source said.DE Shaw’s Composite Fund, the largest multi-strategy fund, generated a net return of about 18.5%, with a net annualized return of 12.9% since its inception in 2001, the person said.

DE Shaw, founded in 1988, managed more than $85 billion as of December 1 across hedge funds, private markets, multi-asset class and active equity investment strategies.

Balyasny, co-founded by Dmitry Balyasny in 2001, returned 16.7% for the year, while Steve Cohen’s Point72 returned 16.5%, according to two people familiar with the matter.

BUMPER YEAR FOR TOP FUNDS

The best multi-manager funds generally posted healthy gains last year, helped by a strong performance in the US stock market, which was boosted by the euphoria around AI-focused stocks. Fund managers have also benefited from US President Donald Trump’s trade wars, which have caused volatility in bond and currency markets. Large global macro hedge funds typically invest in stocks, bonds, currencies and commodities.

“Overall, it was a strong year for hedge funds across all strategies, with decent alpha generation and recognition from allocators,” said Vanessa Bogaardt, global head of capital introduction, prime financing at Bank of America.

“Hedge fund assets are at an all-time high, supported by net inflows into the sector. Allocator sentiment towards hedge funds remains positive, and we see plenty of opportunity to explore in 2026,” she added. The benchmark S&P 500 index rose about 16% last year, from record highs in mid-February to near-bear market lows in early April, and then to new all-time highs in December.

The volatility — largely fueled by Trump’s whiplash trade, fiscal and geopolitical policies — helped trading desks on Wall Street turn a profit as active portfolio rebalancing led to price arbitrage. Bridgewater Associates, founded by billionaire Ray Dalio and currently led by CEO Nir Bar Dea, posted the highest profits in its 50-year history. ⁠The flagship Pure Alpha fund rose 34% in 2025, leading the pack of the top multi-strategy funds that operate so-called pod shops, which refer to teams of traders who oversee multiple asset classes, including stocks, commodities and bonds. Billionaire investor Cliff Asness’s AQR Capital Management posted annual gains of 19.6% in its multi-strategy Apex strategy and 18.6% in its alternative trend-following Helix strategy, another source told Reuters on Friday. However, some top companies, including Millennium and Citadel, lagged behind their largest peers after coming under pressure from the Trump administration’s trade policies in the first half of the year.

Millennium gained 10.5% over the year, while Citadel’s flagship Wellington fund returned 10.2%, according to two sources familiar with the matter. Citadel’s annualized net return has been about 19% since its founding in 1990, one of the sources said.