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. 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 a Goldman Sachs note. In a July survey of 341 hedge fund allocators overseeing more than $1.5 trillion invested in hedge funds, Goldman found nearly half planned to increase their hedge fund exposure in the second half of 2026, while only 3% expected to reduce it. Every major hedge fund strategy brought in fresh capital during the first half, a first in five years, with quantitative funds attracting strong new money and multi-strategy funds posting their strongest inflow levels in five years. Among strategies, equity long/short funds generated gains of 17.7% on average during the first half.
Goldman Sachs Group IncGoldman Sachs is mentioned as the source of the survey and note, highlighting strong hedge fund performance and inflows, which could boost its investment banking and prime brokerage revenues.