Staff Reporter
In 2025, macro hedge funds are leading the pack, capitalizing on market volatility to achieve impressive returns. In contrast, stock-picking and multi-strategy funds have seen more mixed results.
According to data from hedge fund research firm PivotalPath, the overall hedge fund industry has experienced a modest rise of 1.3% this year. However, funds that focus on macroeconomic signals have significantly outperformed this average.
One standout, EDL Capital, specializes in trading currencies and bonds based on global economic trends. As of March 7, the fund has delivered nearly 17% returns since the year’s start, as reported by a source familiar with the situation.
Led by renowned trader Edouard de Langlade, formerly with Moore Capital, EDL Capital was up 5.9% at the end of February, bringing its year-to-date performance to 6.7%. In a volatile March, the fund added another 10%.
Last week marked a turbulent period for markets: German 10-year bonds faced their largest weekly sell-off since 1990, while the euro surged the most since March 2009.
This was triggered by Germany’s announcement to increase defense and infrastructure spending, coinciding with the S&P 500 experiencing its steepest weekly decline in six months amid growing concerns over the U.S. economic outlook.
On average, macro hedge funds reported returns of 2.3% through the end of February, according to PivotalPath.
Rokos Capital Management, for example, recorded a slight dip of 0.29% over the first 21 days of February but managed to recover with a year-to-date return of 0.57%, according to another source. Rokos has declined to comment.
Meanwhile, British financier Andrew Law’s macro fund, Caxton, posted a 4% return in February, bringing its total gains for the first two months of the year to 7%. Caxton has not yet responded to requests for comment.
Stock picking hedge funds encountered significant struggles in February, a trend that has continued into March. Last week, many were caught in crowded trades that led to substantial sell-offs, causing global stock pickers to surrender half of their gains for the year.
According to a note from Goldman Sachs sent to clients on Thursday, global fundamental stock pickers ended the week with an average return of just 1% so far this year.
U.S. stock pickers fared worse, finishing down 1.4% amid last week’s downturn, bringing their year-to-date performance to a negative 0.5%.
Hedge funds employing various trading strategies also faced difficulties, with Goldman’s data indicating that these funds, which had consistently produced positive returns over the past three years, lost money on 18 out of 29 trading days since January 27.
February proved particularly challenging for some of the largest funds, resulting in mixed returns for the year. D.E. Shaw’s Oculus Fund reported a negative return of 4.3%, bringing its year-to-date performance to negative 2.8%, according to a source. D.E. Shaw declined to comment.
Millennium Management, managing approximately $75 billion in assets, saw a decline of 1.3% in February, resulting in year-to-date returns of negative 0.8%. Citadel reported a drop of 1.7% in February, leaving the $66 billion firm 0.3% lower for the year.
In contrast, Balyasny reported a positive return of 0.9% in February, with the $24 billion firm up 3.5% so far this year. The results for Balyasny, Citadel, and Millennium were first highlighted by Bloomberg.
