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In July, global financial markets delivered mixed performance. Strong corporate earnings provided support, but ongoing uncertainty around trade and tariff negotiations weighed on sentiment. U.S. equities led market gains, while performance across Europe, Asia, and Latin America was mixed. Interest rates moved higher for investors as inflationary pressures persisted, although the U.S. Federal Reserve left its policy rate unchanged. The U.S. dollar weakened against most major currencies. Oil led commodity gains, while natural gas, copper, and rubber led declines.

HFRX Equity Hedge Index gained +0.79% in July from gains in fundamental growth and value strategies partially offset by declines in market neutral strategies. The HFRX Fundamental Growth Index gained +1.67% from gains in exposure to small-cap US and European equities. The HFRX Fundamental Value Index gained +0.43% from gains concentrated in large-cap US and European equities. The HFRX Equity Market Netural Index declined -0.21% from declines in mean reverting, factor-based strategies.

HFRX Event Driven Index gained +0.72% for the month from gains in merger arbitrage strategies and special situations managers. The HFRX Merger Arbitrage Index gained +0.86% as global equity markets saw increased volatility and mixed performance in July. The HFRX Special Situations Index gained +0.71% from gains in exposure to global, catalyst-driven fundamental value equities.

HFRX Relative Value Index gained +0.40% in July from gains in convertible arbitrage strategies and multi-strategy managers. The HFRX Fixed Income Convertible Arbitrage Index gained +1.17% as volatility increased through July. The HFRX RV: Multi-Strategy Index gained +0.32% as interest rates remained unchanged.

HFRX Macro/CTA Index gained +0.25% for the month from gains in exposure to opportunistic fixed-income and global multi-asset strategies offset by declines in systematic trend-following managers. The HFRX Macro/Systematic CTA Index declined -0.12% as the US Dollar declined against most currencies. Oil led commodity gains, while natural gas, copper, and rubber led commodity declines.

Comments reference performance figures as of July 31, 2025