Insights and Commentary

MACRO, CTA HEDGE FUNDS SURGE THROUGH HISTORIC INTEREST RATES SPIKE

10/07/2026 Market Commentary
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HFRI Commodity, CTA again lead sub-strategy performance;

Technology Index gained in September

CHICAGO, (October 7, 2026) – Hedge funds posted mixed performance in September as strength in Macro and CTA strategies were offset by weakness across other strategies as interest rates experienced an unprecedented spike while global bond markets came under pressure for the second consecutive month. Upward inflationary pressure added to the strain as uncertainty continued regarding the outlook for resolution of the Iran military conflict. The HFRI Fund Weighted Composite Index® (FWC) declined an in September, with gains in Macro offset by declines in Equity Hedge and other strategies, as reported today by HFR®, the established global leader in the indexation, analysis and research of the global hedge fund industry.

“Hedge funds delivered a decisive split in September, as Macro and CTA strategies surged while interest-rate-sensitive Relative Value, Equity Hedge and Event-Driven strategies declined. Managers traded the powerful trend of over-correlation between oil and interest rates in September, with this deviation from historical relationship driving Systematic trend-following and commodity managers to extend their performance leadership, with the HFRI Macro (Total) Index now up +12.2 percent through the first three quarters of 2026”, stated Kenneth J. Heinz, President of HFR. “With bond market pressure and geopolitical risks likely to persist, potentially leading to increased dislocations and dispersion, we expect investors to continue favoring managers whose performance is uncorrelated to these shocks.”

Index license holders can receive a summary report breaking down performance by strategy and sub-strategy area by contacting HFR Index at IndexData@hfr.com.  Watch video commentary with index performance updates (approximately 2 minutes long) by Ken Heinz at https://www.hfr.com/insights-commentary/

 

NOTE: September 2026 index performance figures are estimated as of October 7, 2026