But the news wasn't so good for CQS, the radically rebuilt super maxi almost capsizing after three minutes and exiting the Heads in seventh position, lagging well behind the trio up front.

The Mark Richards-skippered Wild Oats XI was poorly positioned when the race began, and found itself pinned out wide with Perpetual Loyal and Scallywag on its inside.

Richards was forced to weave through a cluster of smaller yachts in what he described as a "terrible" start, while Perpetual Loyal found immediate clear air and led the fleet of 88 out of the harbour.

"We shouldn't have done that," Richards said before Wild Oats XI exited the Heads in fourth spot and recovered to challenge for the lead as the frontrunners left Sydney behind.

CQS, meanwhile, made an emergency crash tack shortly after the start to avoid another boat, with one of its engines stalling at the same time and rendering the hydraulics momentarily useless.

It meant the keel was unable to swing across as the boat tacked, and the yacht was tipped over at an extreme angle before it recovered, albeit in seventh place.

The tip of the yacht's dynamic stability system board on its port side has also broken off – the underwater wing deployed to provide lift.

"We don't know if we hit something, or it just broke off with the water pressure, but it's gone," skipper Ludde Ingvall said.

"We are somewhat underpowered at the moment. All the others have spinnakers and we do not, but it is still early stages.

"The other three super maxis are in sight ahead of us and we're making good progress."

Beau Geste and Scallywag followed Perpetual Loyal out of Sydney Harbour ahead of Wild Oats XI, with Black Jack and Giacomo also finding the open ocean before CQS.

Scallywag spent most of Monday afternoon battling Black Jack, slightly off the pace of Wild Oats XI and Perpetual Loyal.

The entire fleet had opted to sail east of the rhumb line on Monday afternoon with a more favourable current located well off shore, and Wild Oats XI, Perpetual Loyal and Scallywag were sailing at speeds of up to 25 knots. The race record of one day, 18 hours, 23 minutes and 12 seconds set by Wild Oats XI in 2012 will fall should one of this year's fleet arrive in Hobart by 7.23am on Wednesday morning.

A southerly change predicted to hit the fleet about midnight on Monday is not expected to be as strong as initially forecast, which will likely favour Wild Oats XI and Scallywag. "I've never seen a forecast like this really, I've certainly never been in one – it's perfect for us," Scallywag skipper David Witt said.

"It'll be fair to say that this is probably the first real real chance we've had. We lost a few times on Scandia when we led most of the way but this is the real deal this time. Everyone's pretty quietly confident but it's still a yacht race, anything can happen."

Beau Geste built on an excellent start and was within a nautical mile of the race leader after an hour, before settling in behind the super maxis. Crewman Gavin Brady was hopeful the weather would turn in Beau Geste's favour. "This coast is notorious for throwing curve balls ... there's a lot of weather systems that move really quick up this coast," he said.