Hedge funds log third straight monthly gain in June

Citco-administered hedge funds recorded a weighted average return of 2.4% in June, marking a third consecutive month of gains and helping funds close the second quarter with positive returns. More than half of Citco-managed funds (56.9%) posted positive results.

Global macro strategies led performance with an average return of 3.0%, followed by equities at 2.9%. Fixed income arbitrage returned 2.6%, event-driven gained 2.2% and multi-strategy added 1.8%. Commodity-focused funds were the only major strategy to lose money, falling 2.3% in June. The month ranked as the third-strongest for returns so far in 2026.

Investor inflows totaled $13.6 billion in June, driven by $35.1 billion of subscriptions, bringing year-to-date net inflows for Citco-administered funds to $70.4 billion. Multi-strategy products attracted $9.1 billion of net new capital in June and $43.4 billion in the first half of the year. Hybrid strategies saw $7.2 billion of net subscriptions, while equity strategies recorded net redemptions of $2.0 billion in the month.

Larger managers outperformed on both returns and fundraising. Funds overseeing more than $3 billion in assets under administration returned a weighted average 3.1% in June. Managers with more than $10 billion drew $9.4 billion of net inflows in June and have accumulated $54.4 billion year to date. Managers with $1 billion to $10 billion posted positive flows, while funds with less than $1 billion experienced modest net outflows. On performance, managers with $200 million to $500 million and those below $200 million produced negative returns for the month.

Regionally, Europe led allocations with $7.8 billion of net inflows in June, followed by the Americas at $5.4 billion and Asia at $400 million. Citco reported record operational activity: its treasury teams processed 72,085 payments in June, more than 25% higher than June 2025. Trading volumes increased across derivatives, foreign exchange and commodity futures, and straight-through processing rates improved to 97.4%, alongside increased outsourcing of middle-office functions.

The figures reflect continued net inflows into hedge funds through the first half of 2026.