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In February, global financial markets delivered mixed performance as volatility increased into month-end, with the spike accelerating into early March. The rise in volatility was driven primarily by weakness in technology companies whose business and revenue models faced pressure from continued AI development and investment. Market uncertainty was further amplified by tensions surrounding the U.S.–Iran military conflict, which intensified into March. Large-cap and Technology equities declined during the month, while small-cap stocks and emerging markets generally posted gains. Interest rates fell amid equity weakness despite persistent inflation pressures, while the U.S. dollar strengthened. Commodities were mixed, with Oil and metals surging, while Natural Gas declined.

The HFRU Hedge Fund Composite Index gained +0.90% in February.

• HFRU Macro Index gained +1.34%
• HFRU Equity Hedge Index gained +1.05%
• HFRU Relative Value Index gained +0.58%
• HFRU Event Driven Index declined -0.17%

Comments reference performance as reported on February 27, 2026