Goldman Sachs data shows hedge funds outperforming long-term averages for the sixth straight half-year period in 2026.
Global hedge funds delivered average returns of 7% in the first half of 2026, surpassing the 10-year average of 4.1%. The performance was driven by an artificial intelligence boom and strong equity markets, offsetting weaker fixed income results.
This marks the sixth consecutive half-year period where hedge fund returns exceeded their long-term average. Only the COVID-era years of 2020 and 2021 saw higher returns. A 60/40 passive portfolio returned 5.7% in the same period, highlighting hedge funds’ outperformance.
Investor demand for hedge funds reached a record high, with nearly half of allocators overseeing $1.5 trillion planning to increase exposure in the second half of 2026, according to a Goldman Sachs survey.