The global hedge fund industry saw a 12.6% annual return in 2025, the highest since the financial crisis. Stock-picking and macro strategies drove this growth, with increases of over 17% in both areas, according to Hedge Fund Research (HFR) data quoted by CNBC.

HFR’s Fund Weighted Composite Index rose 1.56% in December, marking the strongest annual gain since 2009. Healthcare-focused equity hedge funds rose 33.8%, while energy and basic materials-focused funds saw a 23.4% increase. Quantitative diversified funds ended the year down 0.65%.

Various hedge funds, including High Ground Investment Management and Citadel, saw positive returns in 2025. The industry’s success highlights resilience and adaptability in uncertain economic times, with diverse strategies driving growth and innovation in investment strategies.

The strong performance of healthcare and energy-focused funds underscores their potential in contributing to overall industry growth. However, the decline in quantitative diversified funds serves as a reminder of the associated risks. The industry’s success in 2025 sets a positive tone for future growth and innovation.

Read more at Yahoo Finance: Hedge Funds See Best Performance Since 2009 as Two Key Strategies Pay Off