LONDON, October 3 - In a recent report by JPMorgan, hedge funds experienced a 1.3% return in September, showcasing a strong performance from managers based in Europe, Asia, and the Middle East, who outperformed their North American counterparts. This information was highlighted in a client note observed by Reuters on Friday.
The JPMorgan note, which meticulously tracks hedge fund trading, indicated a somewhat bullish positioning in U.S. stocks, suggesting an expectation for equities to rise in the near future. However, the report also pointed out that there is significant crowding in the technology sector, particularly within the so-called Magnificent Seven stocks, which include major players like Apple, Amazon, and Nvidia. The concentration in these stocks remains near historical highs, indicating a strong market sentiment.
In Europe, stock-pickers appeared more optimistic, betting on rising equity prices. Conversely, multi-strategy funds, which employ a variety of trading strategies, along with quantitative funds that rely on algorithms, seemed to lean towards the belief that stock prices would decline.
Turning to Asia, where stock markets showed an upward trend, hedge funds maintained a greater number of bets against stocks compared to those betting on price increases. This divergence in outlook underscores the varying market conditions across different regions.
Highlighting individual fund performance, British hedge fund Marshall Wace reported a return of 1.32% for September, bringing its year-to-date performance for the Eureka Fund to 8.04%. The firm's Market Neutral Tops fund posted a 0.45% return in September, contributing to an impressive 13.66% gain for the year thus far. Notably, systematic stock-trading hedge funds, such as those managed by Marshall Wace, have achieved returns exceeding 13% in 2025, as noted in a recent report by Goldman Sachs.
Meanwhile, multi-strategy funds largely remained stagnant over the month, with the exception of Balyasny Asset Management, which saw a notable return of 1.3% in September, bringing its annual return to 10% for the year. This performance reflects the ongoing challenges and strategies employed by hedge funds in the current market landscape.
Reporting for this article was conducted by Nell Mackenzie in London, Anirban Sen in New York, and Summer Zhen in Hong Kong, with editing by Amanda Cooper and Barbara Lewis. The coverage adheres to the Thomson Reuters Trust Principles, ensuring a high standard of journalism.
Anirban Sen serves as the Editor in Charge of Market Structure at Reuters in New York, overseeing the agency's reporting on stock exchanges and market-making firms, including notable entities like Jane Street and Citadel Securities. His previous experience includes being the M&A Editor at Reuters, where he led a team that broke major market news, including significant corporate deals.
In 2023, Anirban was part of a Reuters team that received a prestigious Gerald Loeb Award for their comprehensive coverage of the FTX collapse. Having started with Reuters in Bangalore in 2009, he later worked in various leading business news outlets in India before rejoining Reuters in 2019 as Editor in Charge of Finance, where he continues to lead a team covering a broad spectrum of financial topics.
