Global hedge funds, particularly stock pickers, have significantly outperformed broader market indices, generating returns of nearly 15 per cent in 2025 up to the end of November, according to a recent Goldman Sachs report. This performance surpasses that of several large multi-strategy hedge funds. In November, long and short funds demonstrated resilience by navigating a sharp selloff in technology stocks to post gains of 1.1 per cent, according to Goldman’s December 1 note to clients.
These hedge funds outperformed major indices such as the S&P 500, which remained roughly flat during the month. The Nasdaq Composite Index experienced a decline of over 1.5 per cent, while the Dow Jones Industrial Average climbed just over 0.3 per cent. Goldman Sachs indicated that strategic bets on specific assets, particularly those focused on the healthcare industry, US exposure, and crowded trades, were key drivers of performance during the month.
The healthcare sector continued to be a strong performer, driving positive returns for the sixth consecutive month. It jumped 7 per cent in November and surged nearly 30 per cent for the year ending November. Hedge funds, on a net basis, increased their investments in global equities for the third consecutive month, marking the fastest rate of increase since June.
Systematic funds and quant funds were also among the top performers in November, rising approximately 3.7 per cent. This marked their best monthly performance since March. Goldman Sachs noted that exposure to short positions and the healthcare sector contributed to these funds’ strong returns.
