Hedge funds saw one of their strongest months in recent years, according to the latest data from the Citco Group of Companies (Citco), with $6 billion in net inflows recorded during May 2025.
The asset servicer highlighted a broad-based market recovery and easing trade tariff concerns as key drivers behind investor confidence.
80% of hedge funds administered by Citco delivered positive returns in May, achieving a weighted average return of 3.2%—the second-highest monthly figure this year. Equity strategies led the way with a 4% average return, followed by multi-strategy funds at 3.2%. Commodities funds were the only group to post losses, down 1% for the month.
Investor subscriptions were worth $17.4 billion versus redemptions worth $11.4 billion, according to the data. Multi-strategy funds attracted the lion’s share of new capital at $7.3 billion, while equities and hybrid strategies gained $1.2 billion. Global macro and emerging markets strategies suffered net outflows of $2.5 billion and $2.3 billion respectively.
Hedge funds post 0.9% return in April: Citco
Funds with over $3 billion in AuA delivered the highest returns at 3.6%, followed by those in the $500 million to $1 billion range, which returned 3.1%.
Regionally, the Americas led with $7.9 billion in inflows, followed by Europe with $4.8 billion and Asia with $0.3 billion, even though Europe saw a drop from its strong April performance.
The rate of return spread – the difference between the 90th and 10th percentile fund returns – dipped marginally to 8.9%, down from 9.6% in April.
Although Citco’s treasury payment volumes dipped slightly compared to April, May still saw 56,248 transaction, marking the fourth highest monthly volume on record.
