HFRX INDICES MID-OCTOBER 2026 PERFORMANCE NOTES

Global financial markets posted mixed performance through mid-October as early-month equity strength gave way to increased volatility, driven by renewed concerns surrounding the sustainability and profitability of AI-related investment and persistent inflation pressures. Global equity markets were mixed, with Technology and Semiconductor equities experiencing sharp declines as investors reassessed valuations and the significant debt and capital spending required to support continued AI development. Interest rates remained elevated but declined from early-month highs as increased market volatility supported demand for government bonds, while expectations for additional U.S. Federal Reserve tightening remained in focus. The U.S. dollar strengthened through much of the period before pulling back into mid-month. Commodities were mixed, with Oil gaining amid renewed Middle East supply concerns and disruptions around the Strait of Hormuz, while Gold and other metals remained volatile.

Hedge funds posted declines through mid-October, with the HFRX Global Hedge Fund Index declining -0.65%.

• HFRX Relative Value Index declined -0.01%
• HFRX Event Driven Index declined -0.65%
  
• HFRX Macro Index declined -0.93%
• HFRX Equity Hedge Index declined -1.04%

Comments reference performance figures as of October 15th, 2026