HFRX INDICES: AUGUST 2026 PERFORMANCE NOTES
In August, global financial markets posted mixed performance amid elevated volatility. Most equity indices advanced for the month despite late-month weakness driven by rising bond yields, economic data showing persistent inflation, and renewed focus by the U.S. Federal Reserve on achieving its stated inflation target. Global equity markets gained, with strong early-month performance partially pared into month-end as investors positioned for higher interest rates and rising geopolitical risk associated with the ongoing Iran military conflict. U.S. interest rates rose sharply into month-end, led by shorter-duration maturities, while the U.S. dollar was mixed against most major currencies. Commodities also advanced, with gains in Gold and Oil, while agricultural commodities posted a sharp increase.
Hedge funds gained in August, with the HFRX Global Hedge Fund Index gaining +0.76% for the month.
HFRX Macro/CTA Index gained +1.58% for the month from gains in systematic trend-following manager. The HFRX Macro Systematic/CTA Index gained +2.44% as the U.S. dollar had a mixed performance against most major currencies. Commodities posted strong performance with gains in oil, agricultural commodities, and energy.
HFRX Equity Hedge Index gained +1.38% in August from gains in fundamental growth, value, and market neutral strategies. The HFRX Fundamental Growth Index gained +2.43% from gains concentrated in small-cap US and European equities. The HFRX Fundamental Value Index gained +0.90% from gains seen in large-cap US and European equities. The HFRX Equity Market Neutral Index gained +0.45% from gains in mean reverting, factor-based strategies.
HFRX Relative Value Index gained +0.30% for the month from gains in convertible arbitrage strategies and multi-strategy managers. The HFRX Convertible Arbitrage Index gained +1.14% as volatility fell in August. The HFRX RV: Multi-Strategy Index gained +0.22% as interest rates rose sharply into month-end.
HFRX Even Driven Index gained +0.05% in August from gains in merger arbitrage strategies partially offset by a small decline from special situations managers. The HFRX Merger Arbitrage Index gained +0.87% as M&A deals continued through June and equity markets posted mixed performance. The HFRX Special Situations Index posted a small decline of -0.01% from declines in exposure to global, catalyst-driven fundamental value equities.
Comments reference performance figures as of August 31, 2026