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In June, global financial markets advanced, supported by progress in trade tariff negotiations, expectations of improving economic growth, and easing inflationary pressures. Investor sentiment was also influenced by heightened geopolitical tensions in the Middle East. Equities posted broad-based gains across both developed and emerging markets, with gains observed across sectors, regions, and market capitalizations. Interest rates declined as inflationary pressures eased, and the U.S. dollar weakened against most major currencies. In commodities, platinum led gains, followed by oil and silver. In contrast, most agricultural commodities experienced declines.

Hedge funds gained for the month with the HFRX Market Directional Index gaining +2.72% and the HFRX Global Hedge Fund Index gaining +1.10% for the month.

HFRX Equity Hedge Index gained +1.43% in June from gains in fundamental growth and value strategies as well as market neutral strategies. The HFRX Fundamental Growth Index gained +3.25% from gains in exposure to small-cap US & European equities. The HFRX Fundamental Value Index gained +0.55% from gains concentrated in large-cap US & European equities. The HFRX Equity Market Neutral Index gained +0.09% from gains in mean reverting, factor-based strategies.

HFRX Macro/CTA gained +1.25% for the month from gains in systematic trend-following managers. The HFRX Macro Systematic/CTA Index gained +1.04% as the US Dollar weakened against most currencies. Commodities saw a mixed performance with Platinum, Oil, Lean Hogs, and Silver leading commodity gains.

HFRX Relative Value Index gained +1.07% in June from gains in convertible arbitrage strategies and multi-strategy managers. The HFRX Fixed Income Convertible Arbitrage Index gained +2.11% as volatility declined through June. The HFRX RV: Multi-Strategy Index gained +0.97% as interest rates declined.

HFRX Event Driven Index gained +0.71% for the month from gains in merger arbitrage strategies and special situations managers. The HFRX Merger Arbitrage Index gained +1.46% as global equity markets saw decreased volatility and solid gains in June. The HFRX Special Situations Index gained +0.66% from gains in exposure to global, catalyst-driven fundamental value equities.

Comments reference performance figures as of June 30, 2025