Citco 2026 H1 Fund of Hedge Fund Update

The fund of hedge funds sector saw its best first half performance of the decade so far in the opening six months of 2026, while inflows were also positive.

Funds administered by the Citco group of companies (Citco) had an average return of 7.9% by the midpoint of the year, with over 90% of funds delivering positive returns. Capital flows were also positive, with $6bn of net inflows in the first half of 2026, surpassing the tally for the whole of last year.

Lending continued to be a core trend in the first half, extending the pattern seen in 2025 as fund of funds managers looked to capitalize on elevated returns across the hedge fund universe.

These are some of the findings from the Citco 2026 H1 Fund of Hedge Fund Update, which explores performance, capital flows, trade volumes and treasury volumes.