Who’s winning in a volatile market? Hedge Funds | Paragon Alpha

Who’s winning in a volatile market?

By Matea Gucec

In a year defined by interest rate uncertainty, geopolitical tension, and market rotations, hedge funds have had to be more nimble and precise than ever. While some of the industry's biggest names have stumbled under the weight of macro-driven whiplash, a select group of funds has risen to the top, delivering double-digit returns and capturing investor attention.

With half the year behind us, we take a closer look at the hedge funds that have outperformed in 2025 so far.

1. Crescat Capital has had an exceptional start to the year. Three of its funds rank among the top 10 globally, according to Preqin data. The firm's strong performance is attributed to its strategic positions in precious and critical metals, as well as short positions in overvalued tech stocks, including the S&P 500 and Nasdaq 100.

2. Wincent, a Gibraltar-based crypto hedge fund Wincent reported an impressive 11.3% gain through April. Capitalizing on the cryptocurrency market's volatility, particularly Bitcoin's surge to an all-time high of $111,000 in May, Wincent plans to expand its team by over 50 employees to support its growth.

3. Bridgewater Associates – Pure Alpha Fund achieved a 9.9% return in the first quarter. The fund's success is attributed to its macro strategies and diversified positions across global markets, demonstrating resilience amid market volatility.

4. AQR Capital Management – Apex Strategy posted a 9% return in Q1. The fund benefited from effective long and short positions and arbitrage gains, showcasing the firm's quantitative approach to navigating complex market conditions.

5. EDL Capita, under the leadership of Edouard de Langlade, delivered a remarkable 22% gain in Q1. The fund's performance highlights its adeptness in macro trading and capitalizing on market dislocations.

6. ExodusPoint Capital Management led its peers with a 2.8% return in April, outperforming other prominent multistrategy firms. The fund's diversified approach allowed it to navigate April's market turbulence effectively.

7. Verition Fund Management has maintained an average annual return of approximately 12.9% since its inception. In April, Affiliated Managers Group acquired a minority stake in Verition, reflecting confidence in its consistent performance and strategic direction.

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