The hedge fund industry demonstrated resilience in April 2025 despite ongoing market volatility from global tariff tensions, according to the latest data released by Citco Group of Companies, an asset servicer with over $2 trillion in assets under administration (AuA).
Hedge funds administered by Citco posted a weighted average return of 0.9% for the month, with 53% of funds in positive territory.
Equities funds led the pack, achieving a weighted average return of 1.7%, with global macro funds matching that figure. Commodities funds, however, struggled in April, delivering the only negative result across strategies, with a return of -2%. Fixed income arbitrage funds ended the month flat, recording 0% returns.
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Larger funds saw the strongest performance, with those over $3 billion in AuA generating a 1.3% return, followed by funds in the $1 billion to $3 billion range with a 0.7% return. Smaller funds under $200 million were the only size category to record negative performance, slipping by 0.3%.
April also marked the strongest month for net inflows so far in 2025, as hedge funds attracted $4.6 billion of new capital. Multi-strategy funds were the primary beneficiaries, taking in $3.4 billion of net inflows. The rate of return spread widened as well, with the difference between the 90th and 10th percentile fund returns expanding to 9.6%, up from 9.4% in March.
Regional capital flows were strongest in Europe, which saw $2.3 billion in net inflows, followed by the Americas with $2.1 billion and Asia with a $0.2 billion. In addition, treasury payments processed by Citco remained in record territory, with 59,479 payments completed during the month, representing a 19% increase compared to April 2024.
