Staff Reporter
In 2024, many of the world’s largest hedge funds enjoyed double-digit returns, taking advantage of turbulent markets, shifts in central bank policies, and a closely contested presidential election.
Notable performers included Dan Loeb’s Third Point, based in New York, which reported a remarkable 28.7% return. Steve Cohen’s Point72, owner of the Mets, followed with a solid 19% gain, while Ken Griffin’s flagship Wellington fund from Citadel recorded a 15.1% increase. These figures were shared by sources familiar with the situation, as reported by Bloomberg and Reuters last week.
According to PivotalPath, all three multistrategy hedge funds surpassed the 10.7% average return this year through November, compared to just 5.7% during the same period in 2023.
Some portfolio managers achieved remarkable gains exceeding 50% for 2024, largely driven by what’s being termed the “Trump Trade.”
Notably, Light Street Capital’s long/short fund, which focuses on technology, finished the year with an impressive 59.4% return. Overall, long/short hedge funds experienced their best performance since 2020, as reported by Goldman Sachs.
Discovery Capital, a macro hedge fund, wrapped up 2024 with an impressive 52% return, benefiting from gains across equities, currencies, rates, and credit, according to a source familiar with the fund’s performance. Their trades spanned both emerging and developed markets.
Last year’s gains were bolstered by interest rate cuts from the U.S. Federal Reserve, which helped lift stock prices. Additionally, Donald Trump’s decisive presidential election victory and rate hikes from the Bank of Japan contributed to significant market volatility.
Quantitative hedge funds, leveraging algorithms and coding to navigate the markets, also capitalized on substantial movements in various sectors, including equities, currencies, grains, and soft commodities like cocoa and coffee, both of which experienced notable surges last year.
