Hedge Funds Post 18.4% Q2 Return, Goldman Sachs Reveals Top Strategies

According to Goldman Sachs report obtained by Reuters, equity hedge funds focused on fundamental research achieved 18.4% return in Q2, marking their best quarter on record, with June gains of 4% bringing year-to-date returns to 17.4%.

The bank identified key success strategies including increased stock positions, boosting healthcare holdings, and riding momentum in popular trades. However, June's market volatility inflicted losses, particularly on bets on South Korean equities and certain short positions. Meanwhile, quantitative and systematic hedge funds showed relative weakness, posting only 1.1% returns in June amid tech stock and China volatility, though maintaining 11.3% year-to-date gains.