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Hedge Funds Give up Half of 2025 Gains in 'Challenging' Markets, Says Goldman Sachs


Published on 2025-03-07 11:01:18 - Reuters
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  • Hedge funds were caught in crowded trades that sold off leaving those which pick stocks with a 1% average return on the year so far, said the Goldman Sachs note sent to clients on Thursday and seen by Reuters on Friday.

Hedge funds have experienced a significant reversal in fortunes, giving up nearly half of their gains from 2023, according to a recent report by Goldman Sachs. The report highlights that after a strong start to the year, hedge funds faced challenging market conditions, leading to a decline in performance. Factors contributing to this downturn include increased market volatility, shifts in investor sentiment, and macroeconomic uncertainties. Despite these setbacks, some hedge funds have managed to adapt by adjusting their strategies, focusing on sectors like technology and healthcare, which have shown resilience. However, the overall outlook remains cautious as funds navigate through these turbulent financial waters.

Read the Full Reuters Article at:
[ https://www.msn.com/en-us/money/markets/hedge-funds-give-up-half-of-2025-gains-in-challenging-markets-says-goldman-sachs/ar-AA1ArMVr ]