By Anirban Sen
NEW YORK, July 28 (Reuters) - Global hedge funds are on track for another blockbuster year, as they look to surpass their returns from 2025 after an artificial intelligence boom buoyed first-half performance for money managers across most investment strategies, according to a Goldman Sachs note sent to clients that was seen by Reuters.
During the first six months of this year, hedge funds returned an average of 7%, well above the 10-year average of 4.1%, according to the Goldman report. Those returns have been exceeded only twice, during the COVID years of 2020 and 2021, when market volatility boosted returns for fund managers. It marks the sixth consecutive half-year period in which hedge fund returns exceeded their long-term average.
"Hedge funds broadly have successfully pivoted through the AI complex in the last few years, adeptly shifting exposures through the 'picks and shovels' of the AI boom, moving from semis, to power & data centers, and in the last 12 months decisively towards memory stocks," Goldman wrote.
Demand from allocators, or investors who back hedge funds, has also surged during this year, amid a broadening flow of capital into the industry.
#half
NEW YORK, July 28 (Reuters) - Global hedge funds are on track for another blockbuster year, as they look to surpass their returns from 2025 after an artificial intelligence boom buoyed first-half performance for money managers across most investment strategies, according to a Goldman Sachs note sent to clients that was seen by Reuters.
During the first six months of this year, hedge funds returned an average of 7%, well above the 10-year average of 4.1%, according to the Goldman report. Those returns have been exceeded only twice, during the COVID years of 2020 and 2021, when market volatility boosted returns for fund managers. It marks the sixth consecutive half-year period in which hedge fund returns exceeded their long-term average.
"Hedge funds broadly have successfully pivoted through the AI complex in the last few years, adeptly shifting exposures through the 'picks and shovels' of the AI boom, moving from semis, to power & data centers, and in the last 12 months decisively towards memory stocks," Goldman wrote.
Demand from allocators, or investors who back hedge funds, has also surged during this year, amid a broadening flow of capital into the industry.
#half
2 days ago
