Global hedge funds are on track for another blockbuster year, as they look to surpass their returns from 2025 after an artificial intelligence boom buoyed first-half performance for money managers across most investment strategies.

Hedge Fund Performance

During the first six months of this year, hedge funds returned an average of 7%, well above the 10-year average of 4.1%. Those returns have been exceeded only twice, during the COVID years of 2020 and 2021 when market volatility boosted returns for fund managers.

Institutional investors that were surveyed by Goldman reported average hedge fund portfolio returns of 7.3% in the first half, while private capital investors, including family offices and private banks, reported returns of 8.8%.

Every major hedge fund strategy brought in fresh capital during the first half – a first in five years. Quantitative, or computer-driven, funds continued to attract strong new money, while multi-strategy funds posted their strongest inflow levels in five years.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.