MACRO HEDGE FUNDS SURGE IN AUGUST AS INTEREST RATES RISE, IRAN CONFLICT ESCALATES

HFRI Commodity, CTA, Energy lead sub-strategy performance;

Fixed income based Relative Value advances as interest rates rise;

Technology Index adds +1.5 percent after July decline

CHICAGO, (September 8, 2026) – Hedge funds gained in August, fully recovering their July decline, as global bond markets came under pressure and interest rates rose to historic highs, while the outlook for resolution of the Iran military conflict remained cloudy. The HFRI Fund Weighted Composite Index^® (FWC) advanced +1.7 percent in August, led by Macro and Equity Hedge strategies, as reported today by HFR®, the established global leader in the indexation, analysis and research of the global hedge fund industry. Decomposing HFR FWC Index returns, approximately 70% of hedge funds produced positive performance in August and dispersion narrowed.

“Successfully navigating intense compounding macroeconomic risks, hedge funds posted strong gains in August led by Macro strategies,” stated Kenneth J. Heinz, President of HFR. “While the outlook for equity and fixed income markets in 2H26 has become less clear as a result of recent volatility, the outlook for hedge fund performance has improved, with funds demonstrating performance uncorrelated or negatively correlated to recent shocks to equity, fixed income and commodity markets. With the increased likelihood that these risks will persist or intensify in the coming months, strategic investor asset allocations to the most astutely positioned of managers will be critical to ensuring near and midterm investor returns.”

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: August 2026 index performance figures are estimated as of September 8, 2026