---

Global financial markets delivered mixed performance through mid-February as sentiment surrounding the AI trade shifted from risk-on to risk-off positioning. The move was catalyzed by investors repositioning for potential weakness in companies whose revenues and business models may be threatened or disrupted by the accelerating use, expanding capabilities, and broad-based adoption of AI. Software companies experienced the most pronounced weakness amid this evolving trend. Global equity markets were mixed through mid-month, while both interest rates and the U.S. dollar declined. Commodities also posted declines for the month as Iran-related geopolitical uncertainty continued to rise. Commodity losses were led by Natural Gas, Oil, Platinum, and Copper.

Hedge funds delivered mixed performance, with gains concentrated in fixed income relative value strategies. The HFRX Global Hedge Fund Index declined -0.19%.

• HFRX Relative Value Index gained +0.12%
  
• HFRX Equity Hedge Index declined -0.07%
• HFRX Event Driven Index declined -0.33%
• HFRX Macro Index declined -0.73%

Comments reference performance figures as of February 17th, 2026