FACTBOX: How hedge funds performed in a volatile November

LONDON - Global hedge funds, including stock pickers, have generated returns of nearly 15% in 2025 to the end of November, according to a Goldman Sachs report, edging out several large multi-strategy hedge funds.

In November, long and short funds braved a sharp selloff in technology stocks to post gains of 1.1%, Goldman said in Dec. 1 note to clients. These funds outperformed all the top indices including the S&P 500 .SPX, which ended the month roughly flat. The Nasdaq Composite Index .IXIC declined over 1.5%, while the Dow .DJI climbed just over 0.3%.

Bets on specific assets, investments with a focus on the healthcare industry, U.S. exposure, and crowded trades were the key drivers of performance during the month, Goldman said in the note. The healthcare sector drove positive returns for the sixth straight month, jumping 7% in November and surging nearly 30% for the year to November-end.

On a net basis, hedge funds bought into global equities for a third straight month and at the fastest clip since June.

Systematic funds and quant funds were among the winners in November, rising about 3.7% and posting their best monthly performance since March, Goldman said, adding that exposure to short bets and the healthcare sector helped buoy returns.

The broader selloff in technology stocks that was driven by fears of an AI bubble weighed on the performance of technology, media, and telecom-focused (TMT) funds, which declined 0.8% in November. Despite concerns over stretched valuations, stock pickers accumulated positions in the U.S. TMT sector for the fourth straight month.

Hedge funds remained bullish on North American stocks for the third straight month, while European equities were sold at the quickest pace in seven months. Funds also continued to bet on developed markets in Asia, buying up long positions in Japan and covering short positions in Hong Kong, Goldman said.

Some of the biggest multi-strategy hedge funds including Balyasny Asset Management, Citadel, Schonfeld and Millennium Management also posted gains in November, according to people familiar with the performance of each of the funds.

Nell Mackenzie, Anirban Sen/Reuters