Key Takeaways
- • Half of 322 institutional investors surveyed by Societe Generale expressed interest in allocating capital to discretionary global macro hedge funds over the next 12 months, reflecting a 9% increase in investor appetite since autumn 2024.
- • Global discretionary macro managers delivered approximately 7% returns through April 2025, significantly outperforming the broader hedge fund universe, which remained flat over the same period, according to PivotalPath research data.
- • Investor interest in equity market-neutral hedge funds grew by roughly 10% since SocGen's previous survey, indicating diversified appetite across multiple hedge fund strategies beyond macro.
- • Crypto hedge funds attracted the lowest allocation intent among surveyed strategies, with only 6% of investors willing to commit capital—the lowest level recorded in two years.
- • The resurgence in macro hedge fund interest is driven by global macroeconomic volatility, including tariff uncertainty and trade war dynamics that create significant market dislocations exploitable by discretionary traders.
Summary
Hedge fund investors are demonstrating renewed appetite for discretionary global macro strategies, according to a Societe Generale survey of 322 institutional firms conducted between November 2024 and May 15, 2025. The survey, disclosed to investors on Wednesday and reviewed by Reuters, found that 50% of respondents would consider allocating capital to macro hedge funds within the next 12 months—a meaningful shift reflecting heightened investor confidence in the strategy's current market environment.
This represents a significant rebound in institutional interest. The proportion of investors expressing intent to allocate to macro hedge funds rose approximately 9% compared with SocGen's autumn 2024 survey, marking the highest level of enthusiasm for the strategy in two years. The timing aligns with elevated global macroeconomic volatility stemming from tariff uncertainty and ongoing trade disputes that have created substantial market dislocations and opportunities for discretionary traders to capitalize on large currency, commodity, and cross-asset moves.
Performance data supports this investor pivot. Global discretionary macro managers—those relying on fundamental analysis and judgment rather than systematic algorithmic trading—posted returns of approximately 7% through April 2025, substantially outpacing the flat performance of the broader hedge fund universe over the same period, according to hedge fund research firm PivotalPath. This performance divergence has likely reinforced investor conviction in the strategy's current relevance.
Beyond macro strategies, investor appetite for equity market-neutral hedge funds also expanded, with interest rising roughly 10% since the autumn survey. These funds maintain balanced long and short equity positions designed to neutralize systematic market risk while capturing alpha from security selection. Conversely, crypto hedge funds face the weakest investor demand, with only 6% of surveyed institutions expressing allocation intent—marking the lowest level of interest in two years and suggesting a more cautious stance toward digital asset strategies among institutional allocators.
This represents a significant rebound in institutional interest. The proportion of investors expressing intent to allocate to macro hedge funds rose approximately 9% compared with SocGen's autumn 2024 survey, marking the highest level of enthusiasm for the strategy in two years. The timing aligns with elevated global macroeconomic volatility stemming from tariff uncertainty and ongoing trade disputes that have created substantial market dislocations and opportunities for discretionary traders to capitalize on large currency, commodity, and cross-asset moves.
Performance data supports this investor pivot. Global discretionary macro managers—those relying on fundamental analysis and judgment rather than systematic algorithmic trading—posted returns of approximately 7% through April 2025, substantially outpacing the flat performance of the broader hedge fund universe over the same period, according to hedge fund research firm PivotalPath. This performance divergence has likely reinforced investor conviction in the strategy's current relevance.
Beyond macro strategies, investor appetite for equity market-neutral hedge funds also expanded, with interest rising roughly 10% since the autumn survey. These funds maintain balanced long and short equity positions designed to neutralize systematic market risk while capturing alpha from security selection. Conversely, crypto hedge funds face the weakest investor demand, with only 6% of surveyed institutions expressing allocation intent—marking the lowest level of interest in two years and suggesting a more cautious stance toward digital asset strategies among institutional allocators.
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