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Global financial market volatility surged to historic levels through mid-April, driven by the United States’ imposition of tariffs on a broad range of countries and products. These actions sparked ongoing trade negotiations and heightened uncertainty surrounding near-term supply chain impacts.

Equity markets worldwide experienced significant turbulence as investors reacted to the introduction, delay, and potential suspension of tariffs, along with the ambiguous economic implications. Equities saw steep intra-month losses, followed by a partial recovery – culminating in one of the largest single-day equity market rebounds in history. Small-caps and the energy sector led equity market declines, while France and Hong Kong were among the hardest-hit regional markets.

Interest rates traded within a wide and volatile range. Rates initially declined amid a flight-to-quality bond market rally but later rose as investors anticipated further pressure. The US dollar posted sharp declines against most major currencies. In commodities, gold reached record highs, while natural gas, oil, copper, and silver led broader market declines.

Hedge funds declined through mid-April, with the HFRX Absolute Return Index declining -0.42% and the HFRX Global Hedge Fund Index declining -1.50%.

• HFRX Relative Value Index declined -0.71%
  
• HFRX Event Driven Index declined -0.88%
• HFRX Equity Hedge Index declined -1.49%
• HFRX Macro Index declined -3.96%

Comments reference performance figures as of April 15th, 2025