Hedge Funds Q4 2025: Preqin Quarterly Update

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Hedge funds ended 2025 with a third consecutive positive quarter, bringing 12-month returns firmly into the double digits. Investors expect continued strong performance going into 2026

A slower final quarter for hedge funds leaves 12-month returns roughly on par with global equities
Varying market conditions throughout 2025 have highlighted the diverse return profiles of hedge fund sub-strategies
Overall investor sentiment is positive on hedge fund performance over the next 12 months