Bridgewater Associates and Rokos Capital Management won big in the first quarter, with both hedge funds posting double-digit gains.
Bridgewater’s Pure Alpha strategy returned 15.9% in Q1, while Christopher Rokos’ macro hedge fund climbed by 12.5%, according to Bloomberg.
On average, global hedge funds jumped by 4.95% in Q1, according to data published by hedge fund research firm HFR.
Macro and crypto trading were among the most profitable strategies for hedge funds during the first three months of 2024, the report said.
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The HFR Macro Index, which tracks the performance of macro hedge funds, jumped roughly 7% in Q1, the strongest quarterly performance in more than two decades. The firm’s crypto index climbed by more than 19% during the same period.
“Managers remain keenly focused on the tension between falling macroeconomic risk and rising geopolitical risk in 2024, with potential for sharp reversals, volatility and dislocation driven by either of these powerful trends,” said Kenneth Heinz, president of HFR.
In addition to macro and crypto hedge funds, multi-strategy firms also showed strong performance in the first quarter with Schonfeld, Citadel, and Point72 leading the gains.
Returns at Schonfeld Strategic Partners came in at 6.2% in Q1, while Citadel’s flagship Wellington fund gained 5.75%, Reutersreported. Steve Cohen’s Point72 posted gains of 5.3%, Bloomberg said.
The 7% jump in macro hedge funds in Q1 marks a major rebound from 2023 when they lost 0.34% on average compared with overall industry gains of more than 8%.
The last two years were tough for new hedge fund launches, with a backdrop of growing competition and tightening regulatory requirements.
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The HFR data shows that a total of 432 hedge funds were launched in 2022, while 571 were liquidated. In 2023, the number improved slightly with new hedge fund launches at 438 and liquidations at 415.
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