HFRX INDICES: OCTOBER 2026 PERFORMANCE NOTES

In October, global financial markets posted mixed performance amid elevated volatility as investors reassessed the sustainability and profitability of continued AI-related investment, while geopolitical uncertainty and higher Oil prices remained in focus. Global equity markets declined, with weakness concentrated in Technology and AI-sensitive equities, including Semiconductors, while defensive sectors and portions of the broader U.S. market posted gains. Interest rates declined as increased risk aversion supported demand for government bonds, despite persistent inflation pressures and the U.S. Federal Reserve maintaining interest rates at elevated levels. The U.S. dollar was mixed against most major currencies. Commodities were also mixed, with Oil posting strong gains amid continued geopolitical uncertainty and concerns surrounding global energy supplies, while Gold and Silver declined.

Hedge funds fell in October, with the HFRX Global Hedge Fund Index declining -1.24%.

HFRX Relative Value Index declined -0.21% in October from a slight gain in multi-strategy managers offset by declines in convertible arbitrage strategies. The HFRX RV: Mult-Strategy Index gained +0.02% for the month as interest rates declined in the month. The HFRX Convertible Arbitrage Index declined -2.56% amid elevated and rising volatility.

HFRX Event Driven Index declined -0.28% for the month from declines in special situations managers and merger arbitrage strategies. The HFRX Special Situations Index declined -0.24% from declines in exposure to global, catalyst-driven fundamental value equities. The HFRX Merger Arbitrage Index declined -0.77% as equity markets posted declines through October.

HFRX Macro/CTA Index declined -2.17% in October from declines in systematic trend-following managers. The HFRX Macro Systematic/CTA Index declined -1.79% as the U.S. dollar posted mixed performance against most major currencies. Commodities also had a mixed performance with gains in oil, sugar, and cotton, while gold and silver declined.

HFRX Equity Hedge Index declined -2.49% for the month from declines in fundamental growth, value, and market neutral strategies. The HFRX Equity Market Neutral Index declined -0.66% from declines in mean reverting, factor-based strategies. The HFRX Fundamental Value Index declined -1.82% from declined in large-cap US & European equities. The HFRX Fundamental Growth Index declined -3.95% from declines in small-cap US & European equities.

Comments reference performance figures as of October 30, 2026