Home / Business and Economy / Hedge Funds Soar: Record Gains Amidst Trade War Volatility
Hedge Funds Soar: Record Gains Amidst Trade War Volatility
3 Jan
Summary
- Bridgewater's Pure Alpha II fund achieved a record 34% return in 2025.
- Hedge funds saw their best year in at least five, boosted by market volatility.
- President Trump's trade wars created opportunities for traders in 2025.

In 2025, the hedge fund industry celebrated its most robust year in at least half a decade, with many flagship funds reporting record or near-record returns. Bridgewater Associates' Pure Alpha II macro fund delivered an exceptional 34% return, its strongest performance to date, while its All Weather strategy also climbed 20%.
This success was largely attributed to market volatility stemming from President Donald Trump's trade wars, which created lucrative opportunities for astute traders. Funds like D.E. Shaw & Co.'s Composite hedge fund saw gains of 18.5%, and Michel Massoud's Melqart Opportunities Fund surged by an impressive 45%.
Overall industry returns were bolstered by surging US stocks, precious metals, and significant fluctuations in bond and currency markets. Bridgewater, under new leadership, has been implementing a strategic reboot, with founder Ray Dalio having fully exited the firm in the past year.




