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In August, global financial markets gained as investors positioned for potential interest rate cuts and steady inflation data, supporting a more constructive outlook for the second half of the year. Equity gains were led by small caps, technology, and emerging markets, as many companies reported strong earnings with limited negative impact from tariffs. Interest rates were mixed: shorter-dated yields declined while longer-dated yields posted a modest increase, leading to a steeper yield curve as the U.S. dollar weakened against most major currencies. Commodities delivered mixed results, with gains in gold, silver, and coffee offset by declines in oil, natural gas, and hogs.

The HFRU Hedge Fund Composite Index gained +0.78% in August.

• HFRU Macro Index gained +1.18%
• HFRU Event Driven Index gained +0.86%
• HFRU Equity Hedge Index gained +0.70%
• HFRU Relative Value Index gained +0.53%

Comments reference performance as reported on August 29, 2025.