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Global financial markets delivered mixed performance through mid-May, as equities reached record highs following April’s sharp rebound, while fixed income declined amid rising interest rates after Kevin Warsh was confirmed as the new Chairman of the Federal Reserve. Bond yields moved higher as investors positioned for fewer, or potentially no, rate cuts in the second half of 2026, while also weighing the possibility of renewed rate increases driven by persistent inflation and higher oil prices related to the Iran military conflict. Oil declined through mid-May, though it traded within a wide and volatile range. The U.S. dollar gained on higher bond yields.

Hedge funds posted gains through mid-May, with the HFRX Global Hedge Fund Index gaining +0.86%.

• HFRX Macro Index gained +1.80%
• HFRX Equity Hedge Index gained +1.15%
• HFRX Event Driven Index gained +0.56%
• HFRX Relative Value Index gained +0.27%

Comments reference performance figures as of May 15th, 2026