---

In March, global financial markets declined sharply as volatility spiked, driven by a surge in geopolitical risk and oil prices following the escalation of the military conflict in Iran. Oil rose 40% for the month, while interest rates also increased, led by short-term yields. The U.S. dollar strengthened against most major currencies. Global equities posted sharp losses for the month, despite a strong rally on the final trading day driven by optimism around potential de-escalation. The historic surge in Oil led commodity gains, while Gold and Silver posted sharp declines.

Hedge Funds posted the largest monthly decline since March 2020, led by Equity Hedge strategies, with the HFRX Global Hedge Fund Index declining -2.95%.

HFRX Relative Value Index declined -1.50% for the month from declines in convertible arbitrage strategies and multi-strategy managers. The HFRX RV: Multi-Strategy Index declined -1.30% as interest rates spiked in March. The HFRX Convertible Arbitrage Index declined -3.60% as volatility intensified throughout the month.

HFRX Event Driven Index declined -2.27% in March from declined in merger arbitrage strategies and special situations managers. The HFRX Merger Arbitrage Index declined -1.32% as M&A deals continued through March and global equities posted sharp declines. The HFRX Special Situations Index declined -2.34% from declines in exposure to global, catalyst-driven fundamental value equities.

HFRX Macro/CTA Index declined -3.66% for the month from declines in systematic trend-following managers. The HFRX Macro Systematic/CTA Index declined -2.99% as the U.S. dollar gained on all major currencies. Oil led commodity gains with its historic surge while silver, platinum, and gold led commodity declines in March.

HFRX Equity Hedge Index declined -4.44% in March from declines in fundamental growth & value along with market neutral strategies. The HFRX Fundamental Growth Index declined -5.49% from declines concentrated in small-cap US & European Equities. The HFRX Fundamental Value Index declined -4.16% from declines in exposure to large-cap US & European equities. The HFRX Equity Market Neutral Index declined -1.58% from declines in mean reverting, factor-based strategies.

Comments reference performance figures as of March 31, 2026