Why small hedge funds ruled in 2025

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• Small hedge funds outperformed larger peers in 2025.
• Funds overseeing less than $100 million led the pack, returning 14.6%, per PivotalPath data.
• Strong stock-market gains in 2025 favored long-short equity strategies used by smaller funds.

Hedge fund managers delivered another strong year in 2025, rewarding investors who poured hundreds of billions of dollars into the industry.

Through November, hedge funds gained 10.8% in 2025...