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Led by US technology, AI exposure, and receding bank risk, global financial markets gained in June. Investor optimism regarding peaking inflation and the moderation of interest rate increases also contributed. Technology, Semiconductors, and small cap stocks led sector gains. Italy, Spain, and France led European markets, while India and Japan led Asian gains. Short-duration interest rates increased on slowing generational inflation and moderating expectations for interest rate increases in 2H23; longer-dated interest rates showed little change as the yield curve flattened. The US Dollar gained against the Japanese Yen but declined against the Euro, Pound Sterling, and Swiss Franc. Natural Gas surged to lead commodity gains; Oil, Soybeans, and Lean Hogs also gained, while Platinum, Coffee, and Aluminum declined.
The HFRU Hedge Fund Composite Index posted a gain of +0.89% in June.

HFRU Equity Hedge Index gained +1.13%
HFRU Event Driven Index posted a gain of +0.68%
HFRU Relative Value Argbitrage Index gained +0.66%
HFRU Macro Index gained +0.60%

Comments reference performance as reported on June 30, 2023.