Hedge funds on track for another stellar year on AI boom

NEW YORK, July 28 : Global hedge funds are on track for another blockbuster year, as they look to surpass their returns from 2025 after an artificial intelligence boom buoyed first-half performance for money managers across most investment strategies, according to a Goldman Sachs note sent to clients that was seen by Reuters.During the first six months of this year, hedge funds returned an average of 7 per cent, well above the 10-year average of 4.1 per cent, according to the Goldman report. Those returns have been exceeded only twice, during the COVID years of 2020 and 2021 when market volatility boosted returns for fund managers. It marks the sixth consecutive half-year period in which hedge fund returns exceeded their long-term average."The first half of 2026 was notably strong for risk