Hedge funds began 2026 with fresh inflows and continued positive performance, according to Citco’s Monthly Hedge Fund Report for January.
Net inflows totalled $6.9bn, as subscriptions of $16.5 billion exceeded redemptions of $9.6 billion. The industry recorded its tenth consecutive positive month, with a weighted average return of 0.9%.
Global macro strategies led returns, gaining 6.5% in January after returning 27.7% in 2025. Europe attracted the largest regional inflows at $4.6 billion, ahead of the Americas ($1.5 billion ) and Asia ($0.8 billion ).
Hedge funds attract net inflows since 2021: Citco
Funds with more than $10 billion in assets under administration drew $3.8 billion of inflows. The performance spread between the best and worst performers widening to 9.9% in January (up from 6.3% in December).
Citco processed 60,714 treasury payments in January, up 13% year on year and the highest January total on record. High-frequency trading volumes rose 12.5% month on month, index-linked activity increased more than 110% from December, and trade ingestion straight-through processing rates reached 97.4%.
