11/02/2022 Performance Notes

In November, global financial markets gained as inflation data showed signs of moderation and the Federal Reserve suggesting a slowdown of future interest rate increases. Global equity markets gained led by Technology and Telecom sectors; European gains were led by Germany & Italy, while Hong Kong & Taiwan led Asian gains. Interest rates posted sharp declines led by shorter dated maturities as the yield curve inversion moderated; the US Dollar fell against most currencies. Commodity gains were led by Platinum & Silver; Natural Gas gained while Oil fell in November. In Agricultural commodities, Cotton posted a sharp increase which was offset by a decline in Wheat.
Hedge Funds gained in November with the HFRX Market Directional Index posting a gain of +2.39%, while the HFRX Global Hedge Fund Index advanced +0.15%.  
HFRX Relative Value Index gained +1.57% for the month with gains in both Convertible Arbitrage strategies and Multi-Strategy managers. The HFRX Convertible Arbitrage Index gained +1.78% as volatility declined in November. The HFRX RV: Multi-Strategy Index posted a gain of +1.55% as the Federal Reserve raised interest rates in November but suggest that future interest rate increases may slow down in the coming months.
HFRX Equity Hedge Index gained +0.73% for November from gains in Fundamental Growth and Value strategies offset by declines in Market Neutral Strategies. The HFRX Fundamental Growth Index gained +0.95% from gains concentrated in small-cap US, European, & Emerging Markets equities. The HFRX Fundamental Value Index gained +0.71% for the month from gains in exposure to large-cap US & European equities. The HFRX Market Neutral Index declined -0.25% from declines in mean reverting, factor-based strategies.   HFRX Event Driven Index declined -0.15% for the month from declines in Special Situations equity strategies and Merger Arbitrage managers. The HFRX Special Situations Index posted a slight decline of -0.14% from mixed performance in exposure to global catalyst-driven, fundamental value equities. The HFRX Merger Arbitrage Index declined -0.33% as activity in global M&A deals continued through November.
HFRX Macro/CTA Index declined -2.39% for November from declines in systematic trend-following managers. The HFRX Macro Systematic/CTA Index posted a steep decline of -4.98% in November as the US Dollar fell against most currencies. Commodities saw mixed performance with gains led by Cotton, Silver, and Natural Gas offset by declines in Wheat, Oil. And Lumber. 
Comments reference performance figures as of November 30, 2022