In April 2025, Citco-administered hedge funds delivered a 0.9% average return, with equities and event-driven strategies leading at 1.7%. Net inflows reached $4.6 billion, led by multi-strategy funds. Larger funds outperformed smaller peers. Europe saw the highest regional inflows. Citco processed 59,479 treasury payments and recorded a 96.9% trade STP rate, reflecting strong operational performance.
Funds administered by the Citco group of companies (Citco) achieved an overall weighted average return of 0.9% in April 2025, with 53% of funds delivering positive results. This positive performance came amid volatile market conditions and was accompanied by the largest monthly net capital inflows of the year to date, totalling $4.6 billion, driven by strong investor allocations into multi-strategy funds.
Performance by strategy and fund size
Equity and Event-Driven hedge fund strategies led April’s gains, each posting a +1.7% weighted average return. Global Macro funds also advanced, returning +1.2% on average. Meanwhile, Multi-Strategy funds recorded a more modest +0.3% return for the month.
In contrast, Fixed Income Arbitrage strategies were flat at 0.0%, and Commodities funds lagged with a -2% return – the only strategy to finish April in negative territory.
Larger funds outperformed smaller peers on an assets-under-administration (AUA) basis. Funds with over $3 billion in AUA achieved a +1.3% average return, followed by mid-sized funds in the $1 billion–$3 billion range at +0.7%. Funds in the $500 million–$1 billion tier posted a +0.5% gain, and those with $200 million–$500 million in AUA were slightly positive at +0.1%.
The smallest funds (under $200 million AUA) were the only group to see losses, with an average return of -0.3% in April. Return dispersion widened as well – the spread between top- and bottom-decile fund performances expanded to 9.6% in April, up from 9.4% in March, indicating greater performance divergence across managers.
Strong capital inflows across strategies and regions in April
April saw robust net inflows of $4.6 billion into hedge funds, marking the strongest month for hedge fund capital flows so far in 2025. Multi-Strategy funds attracted the majority of new capital, with $3.4 billion of net inflows in April.
Several other strategy categories also recorded net inflows: Funds of Funds received $0.7 billion, Hybrid funds $0.6 billion, Arbitrage strategies $0.3 billion, Global Macro $0.2 billion, and Event-Driven funds $0.1 billion. In contrast, Equity hedge funds and Emerging Markets strategies experienced net outflows of approximately $0.5 billion and $0.1 billion, respectively.
By fund size, inflows were concentrated in the industry’s largest firms. Hedge funds with over $10 billion AUA garnered $2.4 billion of net inflows in April, and even the smallest funds (those under $1 billion AUA) saw a combined $1.1 billion of inflows.
Mid-sized funds in the $5 billion–$10 billion bracket received about $0.8 billion, while those in the $1 billion–$5 billion range took in $0.3 billion. Geographically, Europe led regional flows with $2.3 billion of net inflows, followed by the Americas with $2.1 billion and Asia with $0.2 billion, reflecting broad-based investor interest across major markets.
Operational efficiency and volume growth
Citco’s operational data for April show a continued increase in volume and efficiency. The firm processed 59,479 treasury payments during the month, a figure up 19% year-on-year compared to April 2024.
Trade processing volumes also rose by 6.2% month-on-month, underscoring heightened activity, and the straight-through processing (STP) rate remained high at 96.9%. These operational metrics highlight Citco’s capacity to handle growing fund activity while maintaining efficient processing standards.
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