Key Takeaways
- • Schonfeld Strategic Advisors led 2024 performance with a 19.7% return, managing approximately $12 billion in assets and rebounding strongly from a difficult 2023.
- • Point72 and D.E. Shaw delivered comparable results, with Point72 posting 19% returns and D.E. Shaw Composite achieving 18%, demonstrating broad strength across multistrategy platforms.
- • Walleye Capital gained 17.7% in 2024, managing $7.7 billion in assets and ranking among the year's top performers in the multistrategy space.
- • Hedge funds broadly outperformed historical benchmarks in 2024, with the industry averaging 11.8% to 11.9% returns amid favorable market conditions including the "Trump Trade" rally.
- • December 2024 showed modest month-end performance, with Schonfeld up 2.1%, Point72 up 3.7%, and Walleye up 1.8%, contributing to strong full-year totals.
Summary
Hedge funds delivered a robust performance recovery in 2024, with leading multistrategy managers capturing double-digit returns that substantially exceeded both historical averages and 2023's more challenging results. Schonfeld Strategic Advisors emerged as the year's clear winner, returning 19.7% on approximately $12 billion in assets under management. The firm's strong showing represented a significant recovery from 2023, when performance had been marked by headwinds. Point72 followed closely with a 19% return, while D.E. Shaw's composite fund achieved 18%, indicating broad-based strength among the industry's largest multistrategy platforms.
Walleye Capital, managing $7.7 billion, secured 17.7% gains for the year, rounding out the tier of exceptional performers. All four firms meaningfully exceeded the broader hedge fund industry average of 11.8% to 11.9% in 2024, reflecting both manager skill and favorable market conditions. December performance proved solid but not exceptional, with Schonfeld posting 2.1%, Point72 delivering 3.7%, and Walleye up 1.8%, suggesting that year-end positioning was prudent rather than aggressive.
The strong 2024 returns occurred amid what market participants described as a "Trump Trade" environment, which benefited many hedge fund strategies. More than 80% of allocators reported that their hedge fund holdings met or beat expectations over the preceding five-year period, underscoring renewed confidence in the asset class after several years of relative underperformance. The diversity of strategies within multistrategy frameworks—spanning equity, credit, macro, and quantitative approaches—helped leading managers capture opportunities across multiple markets throughout the year.
Walleye Capital, managing $7.7 billion, secured 17.7% gains for the year, rounding out the tier of exceptional performers. All four firms meaningfully exceeded the broader hedge fund industry average of 11.8% to 11.9% in 2024, reflecting both manager skill and favorable market conditions. December performance proved solid but not exceptional, with Schonfeld posting 2.1%, Point72 delivering 3.7%, and Walleye up 1.8%, suggesting that year-end positioning was prudent rather than aggressive.
The strong 2024 returns occurred amid what market participants described as a "Trump Trade" environment, which benefited many hedge fund strategies. More than 80% of allocators reported that their hedge fund holdings met or beat expectations over the preceding five-year period, underscoring renewed confidence in the asset class after several years of relative underperformance. The diversity of strategies within multistrategy frameworks—spanning equity, credit, macro, and quantitative approaches—helped leading managers capture opportunities across multiple markets throughout the year.
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