September 2025 was a strong month for many hedge funds, as they successfully managed choppy markets and captured opportunities across equities, commodities, and multi-strategy plays. While results were varied, the overall tone of the industry was one of resilience and positive momentum.
Several flagship managers stood out. AQR Capital Management delivered particularly strong returns across multiple strategies. Its Apex Strategy rose 4.0% in September, while the Delphi Long-Short Equity Strategy gained 2.9%, bringing year-to-date performance above 14%. Most notably, AQR’s Managed Futures Full Volatility Strategy surged 9.3% during the month, underscoring the value of systematic and trend-following approaches in today’s market environment.
Activist manager Pershing Square Holdings also reported impressive results, advancing 4.1% net in September. The fund is now up over 23% year-to-date, reflecting the strength of its concentrated equity positions and the benefit of high-conviction, long-term investing.
Multi-manager platforms continued to provide steady returns. Citadel’s Wellington fund added 0.2% in September, Balyasny Asset Management gained 1.3% (10% YTD), and ExodusPoint returned 2.0% (12.3% YTD). These results highlight the importance of diversified portfolio construction and risk management, particularly during periods of heightened volatility.
However, not all firms shared in the gains. Eisler Capital announced its closure in September after a stretch of weak performance. The decision underlines the challenges smaller managers face in an increasingly competitive landscape, where scale and stability often determine long-term viability.
At the regional level, hedge funds were more cautious. Emerging Asia saw the largest weekly hedge fund equity selloff in more than five months toward the end of September, a sign of persistent concerns around growth and policy direction in the region. Even so, strength in equity long/short and macro strategies offset regional challenges, keeping industry performance broadly positive.
For investors, September’s results serve as a reminder of the hedge fund industry’s diversity. Well-capitalized, adaptive strategies continue to generate compelling returns, while less resilient firms face structural headwinds. The winners were those able to act decisively across asset classes, demonstrating both agility and discipline.
? To stay ahead of industry shifts and exclusive talent intelligence, subscribe to the Alpha Watch Tower for full updates.
Share
Similar Articles:
