In 2025, Bridgewater Associates and D.E. Shaw & Co. saw record gains with Bridgewater’s Pure Alpha II fund returning 34% and D.E. Shaw’s flagship multistrategy fund gaining 18.5%. Other top performers included Michel Massoud’s Melqart Opportunities Fund up 45% and Millennium Management gaining 10.5%. Citadel’s flagship hedge fund posted a 10.2% increase.

Overall, hedge funds had a strong year in 2025 with industry returns on track to be the best in at least five years. Surging US stocks, precious metals, and volatility in bond and currency markets due to President Trump’s trade wars contributed to the success. Bridgewater, under new leadership, posted double-digit returns across strategies.

Bridgewater’s Pure Alpha II fund rebounded from annualized returns of less than 3% in previous years to post significant gains in 2025. The firm’s AIA Labs fund, which uses machine learning for decision-making, raised over $5 billion and saw an 11% increase last year. AQR Capital Management’s multistrategy offering returned 19.6%.

In the world of hedge funds, Bridgewater Associates, D.E. Shaw & Co., and other top players saw significant gains in 2025 thanks to market uncertainty and strong performance across strategies. Bridgewater’s Pure Alpha II fund posted its best ever returns, while D.E. Shaw’s Composite hedge fund and Oculus also saw impressive gains. Other notable performers included Michel Massoud’s Melqart Opportunities Fund and Millennium Management. Citadel’s flagship hedge fund saw a 10.2% increase, marking a successful year for the industry overall.

Read more at Yahoo Finance.: Bridgewater, D.E. Shaw Among Top Hedge Fund Gainers of 2025