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Global financial markets delivered mixed performance through mid-December as the U.S. Federal Reserve cut interest rates, while investor focus remained centered on the sustainability of AI technology spending and valuation concerns. Global equities were mixed, with modest gains in small-caps offset by declines in large-cap equities. Bond yields rose despite the Federal Reserve lowering interest rates, as investors weighed persistent inflation pressures that could restrict interest-rate cuts into 2026. The U.S. dollar declined for the month, while cryptocurrencies remained volatile. Commodities were mixed, with energy leading declines – driven by Oil and Natural Gas – while Silver, Platinum, and Cattle posted gains.

Hedge funds posted gains through mid-December with the HFRX Global Hedge Fund Index gaining +0.12%.

• HFRX Macro Index gained +0.33%
  
• HFRX Equity Hedge Index gained +0.17%
• HFRX Event Driven Index gained +0.08%
• HFRX Relative Value Index declined -0.03%

Comments reference performance figures as of December 15th, 2025