HFRX INDICES: JANUARY 2026 PERFORMANCE NOTES
Global financial markets began 2026 with gains, navigating high volatility as geopolitical risk increased. The strong performance trends from 2025 extended into the new year and were led by small-cap exposures and commodities. Global equity markets posted muted gains amid heightened volatility, driven by strength in small-cap stocks, energy and commodity-sensitive sectors, and emerging markets. Interest rates were little changed for the month as investors focused on the transition in Federal Reserve leadership and strong economic data. The U.S. dollar declined against most major currencies. Commodities delivered strong gains amid elevated volatility, led by Natural Gas, Oil, and Silver.
Hedge funds gained in January led by Macro strategies, with the HFRX Global Hedge Fund Index gaining +2.00%.
HFRX Macro/CTA Index gained +4.00% for the month from gains in systematic trend-following managers. The HFRX Macro Systematic/CTA Index gained +5.22% as the U.S. dollar declined against most major currencies. Commodities posted strong gains led by Natural Gas, Oil, Rice, and Silver.
HFRX Equity Hedge Index gained +2.26% in January form gains in fundamental growth, value, and market neutral strategies. The HFRX Fundamental Growth Index gained +4.06% from gains concentrated in small-cap US and European equities. The HFRX Fundamental Value Index gained +1.51% from gains exposure to large-cap US and European equities. The HFRX Equity Market Neutral Index gained +0.10% from gains in mean reverting, factor-based strategies.
HFRX Event Driven Index gained +1.66% for the month from gains in special situations managers and merger arbitrage strategies. The HFRX Special Situations Index gained +1.75% from gains in exposure to global, catalyst-driven fundamental value equities. The HFRX Merger Arbitrage Index gained +0.53% as M&A deals continued through January, and global equities posted positive performance.
HFRX Relative Value Index gained +0.90% in January from gains in convertible arbitrage strategies and multi-strategy managers. The HFRX Convertible Arbitrage Index gained +2.48% for the month as volatility was high in January. The HFRX RV: Multi-Strategy Index gained +0.75% as interest rates remained little changed for the month.
Comments reference performance figures as of Feburary 3, 2026