Top hedge funds led by D.E.Shaw, Bridgewater and Balyasny deliver big gains in 2025
Major hedge funds like D.E. Shaw and Bridgewater Associates achieved significant double-digit gains in 2025, fueled by an AI-driven stock market rally and global economic volatility. These top performers navigated a year of record fluctuations, with some funds posting their highest profits ever, attracting substantial investor interest.
Synopsis
Major hedge funds like D.E. Shaw and Bridgewater Associates achieved significant double-digit gains in 2025, fueled by an AI-driven stock market rally and global economic volatility. These top performers navigated a year of record fluctuations, with some funds posting their highest profits ever, attracting substantial investor interest.
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Top hedge funds like D.E. Shaw and Bridgewater Associates saw impressive double-digit returns in 2025.
Large multi-manager funds, including D.E. Shaw, Balyasny Asset Management, Bridgewater Associates, and Point72 Asset Management, generated mostly double-digit gains in 2025, reflecting an upbeat year for the hedge fund industry that was buoyed by an AI-powered stock market rally.
D.E. Shaw's two flagship funds produced double-digit returns, a source familiar with the matter told Reuters on Friday, reflecting similar gains seen across top multi-strategy peers during a year of record volatility.
The firm's Oculus Fund generated a net return of around 28.2% for the year and has made a net annualized return of 14.4% since its founding in 2004, the source said.
D.E. Shaw's Composite Fund, which is its largest multi-strategy fund, generated a net return of around 18.5%, with an annualized net return of 12.9% since its inception in 2001, the person said.
Founded in 1988, D.E. Shaw managed more than $85 billion as of December 1 across hedge funds, private markets, multi-asset-class and active equity investment strategies.
Balyasny, which was co-founded in 2001 by Dmitry Balyasny, delivered gains of 16.7% during the year, while Steve Cohen's Point72 produced a return of 16.5%, according to two people familiar with the matter.
BUMPER YEAR FOR TOP FUNDS
Top multi-manager funds broadly enjoyed healthy gains last year, helped mainly by a strong performance from the U.S. stock market that has been lifted by euphoria around artificial intelligence-focused stocks. Fund managers also have benefited from U.S. President Donald Trump's trade wars that triggered volatility in bond and currency markets. Large global macro hedge funds typically invest in stocks, bonds, currencies and commodities.
"Overall, it has been a strong year for hedge funds across strategies, with decent alpha generation and recognition from allocators," said Vanessa Bogaardt, global head of capital introduction, prime financing at Bank of America.