Finance

Hedge funds lure record inflows in first half of 2025

Published by Global Banking & Finance Review

Posted on July 18, 2025

2 min read

· Last updated: January 22, 2026

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Hedge funds lure record inflows in first half of 2025
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NEW YORK (Reuters) -Global hedge funds had their strongest inflows in the first half of the year since 2015, gaining popularity in turbulent markets amid U.S. President Donald Trump's new trade

Hedge Funds Experience Record Inflows in Early 2025 Amid Market Turbulence

NEW YORK (Reuters) -Global hedge funds had their strongest inflows in the first half of the year since 2015, gaining popularity in turbulent markets amid U.S. President Donald Trump's new trade policies, data from provider HFR showed.

Hedge funds lured $37.3 billion in inflows in the first half of 2025, while they attracted $7.2 billion in the same period a year earlier, according to HFR.

Roughly $30 billion in fresh was were invested into hedge funds with over $5 billion in assets under management.

The record inflow came at a period hedge funds on average posted gains of 3.88%, while the S&P 500 was up 5.5% and closed the first half at an all-time high.

Some funds, however, posted double digit gains. Bridgewater Associates' flagship fund gained 17%, Rokos Capital Management rose 12.26% and Caxton Associates had a 14% return.

The industry ended June with $4.74 trillion in assets under management, combining the new inflows and returns it posted, HFR added.

Kenneth J. Heinz, president of HFR, said in a statement he expects more inflows through the end of the year. "Institutions are likely to continue expanding allocations to funds which have demonstrated their strategy's ability to deliver strong, uncorrelated performance gains through the dislocation and disruptive market cycles of the first half of 2025."

(Reporting by Carolina Mandl in New YorkEditing by Nick Zieminski)

Key Takeaways

  • Hedge funds attracted $37.3 billion in inflows in early 2025.
  • Inflows are the highest since 2015 amid market turbulence.
  • Bridgewater Associates saw a 17% gain in its flagship fund.
  • Industry assets reached $4.74 trillion by June 2025.
  • Institutions are likely to increase allocations to hedge funds.

Frequently Asked Questions

How much did hedge funds attract in inflows during the first half of 2025?
Hedge funds lured $37.3 billion in inflows in the first half of 2025, compared to $7.2 billion in the same period a year earlier.
What was the average gain of hedge funds in the first half of 2025?
On average, hedge funds posted gains of 3.88% during the first half of 2025.
Which hedge funds reported the highest returns?
Bridgewater Associates' flagship fund gained 17%, Rokos Capital Management rose 12.26%, and Caxton Associates had a 14% return.
What is the total assets under management for the hedge fund industry as of June 2025?
The industry ended June 2025 with $4.74 trillion in assets under management.
What does Kenneth J. Heinz expect for hedge fund inflows in the future?
Kenneth J. Heinz, president of HFR, expects more inflows through the end of the year as institutions continue to expand allocations to funds.

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