Key Takeaways
- • Multistrategy hedge funds delivered average returns of 12.1% over the 12 months to 30 June 2026, versus 7% for the broader hedge fund industry, according to Goldman Sachs data.
- • Multistrategy funds recorded volatility of 6.2% over the same period, compared with 11.3% across the wider hedge fund industry.
- • Over five years, both multistrategy funds and the broader industry delivered annualised returns of 7.8%, but multistrategy volatility was 6.7% versus 11.8% for the industry.
- • Strong performance and lower volatility are driving renewed institutional allocator interest and growth in multistrategy assets under management, per Pensions & Investments.
Summary
Multistrategy hedge funds have recorded strong growth in assets under management, supported by robust investment returns and renewed institutional investor interest, according to a report by Pensions & Investments.
Over the 12 months to 30 June 2026, multistrategy funds delivered average returns of 12.1%, outperforming the broader hedge fund industry's 7%, according to Goldman Sachs data. The strategies also recorded significantly lower volatility of 6.2%, compared with 11.3% across the wider industry.
The performance advantage extends over longer periods. Over five years, both multistrategy funds and the broader hedge fund universe delivered annualised returns of 7.8%, although multistrategy funds recorded volatility of 6.7%, compared with 11.8% for the industry overall. Multistrategy funds generated stronger risk-adjusted returns, as measured by the Sharpe ratio.
The combination of competitive returns and lower volatility has strengthened the appeal of multistrategy platforms among institutional allocators. This has contributed to growth in assets under management as investors seek more consistent performance across market conditions.
Over the 12 months to 30 June 2026, multistrategy funds delivered average returns of 12.1%, outperforming the broader hedge fund industry's 7%, according to Goldman Sachs data. The strategies also recorded significantly lower volatility of 6.2%, compared with 11.3% across the wider industry.
The performance advantage extends over longer periods. Over five years, both multistrategy funds and the broader hedge fund universe delivered annualised returns of 7.8%, although multistrategy funds recorded volatility of 6.7%, compared with 11.8% for the industry overall. Multistrategy funds generated stronger risk-adjusted returns, as measured by the Sharpe ratio.
The combination of competitive returns and lower volatility has strengthened the appeal of multistrategy platforms among institutional allocators. This has contributed to growth in assets under management as investors seek more consistent performance across market conditions.
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