Hedge Funds Return 12.3% in Q2 2026, Best Quarter of the Decade

Hedge funds posted a weighted average return of 12.3% in the second quarter of 2026, the industry’s strongest quarterly showing of the decade so far, according to fund administration data from Citco. The rebound was sharp: it followed a soft first quarter, and it arrived alongside a fresh wave of investor capital, a combination that’s been building since the industry rebounded 5.6% in April after a rough March.

Equities, macro and multi-strategy carried the gains

The rebound was broad but uneven. Equity funds led with a weighted average return of 15.7%, followed by global macro at 13.4% and multi-strategy at 10.5%. Event driven funds returned 7.5% and fixed income arbitrage 3.4%. Commodities were the lone laggard, down...