Core Insights - Hedge funds are on track for their best annual performance since 2020, with an average gain of 16.6% through three quarters and over $40 billion in net inflows from investors [1][7]. Performance Overview - The industry achieved a 5.2% weighted average gain in Q3, with 80% of funds posting positive returns despite macroeconomic and geopolitical challenges [2][4]. - Multistrategy funds led the performance with an average gain of 19.3%, followed by equities funds at 17.1% and global macro funds at 15.8% [3][7]. Strategy-Specific Insights - Global macro funds were the top performers in Q3, achieving a 6.5% gain, while equities and multistrategy funds gained 5.6% and 4.8%, respectively [4]. - Commodities and event-driven strategies faced challenges but still managed to record gains in Q3 [5]. Inflows and Investment Trends - Multistrategy funds attracted the majority of the industry's investment inflows, accounting for $30 billion of the $41.3 billion in net inflows in 2025, with $18 billion added in Q3 alone [6][8]. - The popularity of multistrategy funds has led to a significant increase in assets under management, surpassing $425 billion, more than double their size in 2020 [8]. Investor Sentiment - Continuous inflows in Q3 indicate that investors are capitalizing on consistent performance, driven by the appeal of diversification and returns [9].