Hedge fund AUM growth and positive performance

According to HFR, the global hedge fund industry grew by about US$628bn in 2025. The industry AUM grew passed US$5tn in October.

Hedge fund performance accelerated in December to conclude a strong 2025, driven by gains across macro and equity long/short hedge funds, as risks and opportunities evolved into the new year across geopolitical, energy, AI/technology and cryptocurrency markets. The HFRI Fund Weighted Composite Index (FWC) gained +1.6% in December, advancing for the eighth consecutive month, led by macro commodity, trend-following and energy funds, according to HFR. The FWC surged +12.6% in 2025, the strongest calendar year of performance since 2009.

The PivotalPath Composite Index finished 2025 at +11.8%.