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In November, global financial markets delivered mixed performance as volatility rose from prior months, driven in part by sharp declines in cryptocurrencies and by a broader tension between expectations for lower interest rates and concerns about valuation and sustainability of continued AI-related technology spending. Global equities fluctuated throughout the month, alternating between gains and losses across regions and sectors. Shorter-dated interest rates fell amid increased volatility and growing expectations for a U.S. Federal Reserve rate cut, while longer-dated yields were little changed. The U.S. dollar declined against most major currencies. Commodities were similarly mixed, with gains in Natural Gas and Silver offset by weakness in Oil and Cocoa.

Hedge funds posted gains in November with the HFRX Global Hedge Fund Index gaining +0.14%.

HFRX Event Driven Index gained +0.27% in November from gains in special situations partially offset by declines in merger arbitrage strategies. The HFRX Special Situations Index gained +0.29% from gains in exposure to global, catalyst-driven fundamental value equities. The HFRX Merger Arbitrage Index declined -0.07% as global equity markets saw increased volatility and mixed performance through November.

HFRX Macro/CTA Index gained +0.19% for the month from gains in systematic trend following managers. The HFRX Macro/Systematic CTA Index gained +1.09% as the U.S. dollar declined against most major currencies, and commodities had a mixed performance. Natural gas, silver, and platinum led commodity gains, while oil, cocoa, and cotton led November declines.

HFRX Relative Value Index gained +0.07% in November from gains in multi-strategy managers offset by declines in convertible arbitrage strategies. The HFRX RV: Multi-Strategy Index gained +0.17% as shorter-dated interest rates fell and longer-dated rates remained little changed. The HFRX Fixed Income Convertible Arbitrage Index declined -1.04% as volatility increased in November.

HFRX Equity Hedge index gained +0.04% for the month from gains in fundamental value and market neutral strategies offset by declines in fundamental growth strategies. The HFRX Fundamental Value Index gained +0.77% from gains in exposure to large-cap US and European equities. The HFRX Equity Market Neutral Index gained +0.65% from gains in mean reverting, factor-based strategies. The HFRX Fundamental Growth Index declined -1.40% from declines concentrated in small-cap US and European equities.

Comments reference performance figures as of November 28, 2025