Citco 2026 Q1 Hedge Fund Report

Hedge fund performance turned negative in Q1 amid the sell-off in global markets sparked by conflict in the Middle East.

Across the $1.3trn of hedge fund assets administered by the Citco group of companies (Citco), gains achieved in the first two months of the year were wiped out by March’s downturn. The average fund had a weighted average return of -1.4% in Q1, bringing a quarterly winning streak spanning 13 quarters to a close.

While performance declined, hedge funds saw inflows in every month of the first quarter, recording one of the highest net inflows in a single quarter seen so far this decade. Funds had overall net inflows of $24.1bn in Q1, just ahead of the $23.5bn seen in Q3 of last year.

These are some of the findings from Citco's Quarterly Hedge Fund Report covering Q1 2026, which explores performance, capital flows, trade volumes and treasury volumes.