, Columnist
Hedge Funds Have One More Myth to Bust
Are hedge funds looking at 2026 through rose-tinted glasses?
Photo: Timothy A. Clary/AFP/Getty Images
The $5 trillion hedge fund industry posted its best returns since the Global Financial Crisis last year, a welcoming reprieve for an asset class that has been overshadowed by the rise of private alternatives. Before declaring the worst is over however, boutique funds have one more myth to bust.
Everything worked last year. A global stock boom lifted equity funds, while macro traders thrived amid the volatility created by President Donald Trump’s tariffs. Event-driven strategies also did well thanks to a surge in activist campaigns, especially in Japan where the government is pushing for better corporate governance.