Many of the world’s largest hedge funds reaped substantial double-digit returns in 2024, capitalizing on volatile markets, central bank policy shifts, and a closely contested presidential election. Among the top performers were Dan Loeb’s New York-based Third Point, achieving a 28.7% return, Steve Cohen’s Point72 (owner of the Mets), reporting a 19% return, and Ken Griffin’s Citadel flagship Wellington fund, which gained 15.1%. These multistrategy hedge funds surpassed the 10.
7% average return for the year through November, as reported by PivotalPath, compared to 5.7% during the same period in 2023. Some portfolio managers even secured gains exceeding 50% for 2024, largely attributed to the so-called “Trump Trade.” Light Street Capital’s long/short technology fund concluded 2024 with a 59.4% increase. Long/short hedge funds experienced their most successful year since 2020, according to Goldman Sachs. Discovery Capital, a macro hedge fund, finished 2024 up 52% with profits across equities, currencies, rates, and credit, executing trades in both emerging and developed economies. The “Trump Trade,” which involved shorting bonds while going long on stocks and the dollar, aided London-based Rokos Capital Management in achieving a 30.7% gain through December 27. These significant returns coincided with the S&P 500’s 23% gain in 2024, following a near 20% decline in 2022. D.E. Shaw recorded double-digit returns in two of its multistrategy funds. Its flagship Composite fund gained 18% in 2024, while its macro-oriented fund Oculus reported a 36% return, marking its best annual performance ever, according to Reuters. British hedge fund Marshall Wace, managing approximately $71 billion, reported double-digit returns across several of its funds, as stated by a source to Reuters