US Stock Market: Healthcare, momentum bets power hedge funds to strong H1 returns

US stock-picking hedge funds posted a 4% return in June, with 18.4% gains in Q2 marking their strongest quarterly performance in Goldman Sachs records, bringing year-to-date returns to 17.4%. Healthcare exposure, momentum trades, and larger portfolio positions drove the gains, though losses from South Korean equities and short positions capped returns. Systematic hedge funds gained 1.1% in June for 11.3% year-to-date, hurt by volatility in US tech stocks, Chinese equities, and long-dated US Treasuries.