2025 turned out to be a game changer for hedge funds. While traditional markets looked chaotic on the surface, savvy fund managers actually cashed in big—posting their best annual returns in over a decade and a half.

According to Hedge Fund Research's latest data, the year's volatility and market dislocations created exactly the kind of trading opportunities that hedged strategies thrive on. It wasn't just a recovery story; some funds crushed it.

What made 2025 stand out? Think market uncertainty on steroids. When correlations break down and asset classes move in unexpected directions, that's when sophisticated players with hedging tools and contrarian positioning can make serious money. The data shows which funds capitalized hardest on these moves—and their performance numbers are honestly impressive for anyone tracking alternative asset returns.