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Global financial markets advanced through mid-October, supported by accelerating M&A activity and strategic investment in artificial intelligence, alongside easing geopolitical risk, even as the U.S. government shutdown persisted. Global equities traded near record highs, with elevated daily volatility and strength in small caps. Interest rates declined across all maturities as investors positioned for an environment of lower rates, while the U.S. dollar gained against most major currencies. Commodities delivered mixed performance: gold and silver surged to record highs, while oil and natural gas declined.

Hedge funds gained through mid-October, with the HFRX Global Hedge Fund Index gaining +0.27%.

• HFRX Macro Index gained +0.83%
• HFRX Relative Value Index gained +0.42%
  
• HFRX Event Driven Index gained +0.33%
• HFRX Equity Hedge Index declined -0.22%

Comments reference performance figures as of October 15th, 2025