---

Global financial markets gained through mid-January as the acceleration of generational inflation slowed, though investors positioned for a weakening economy in 1H22. Small caps, technology, commodities, and energy led global equity market gains, while Spain, Italy, France, Brazil, and Hong Kong led regional gains. Interest rates declined on slowing inflation metrics, while the US dollar fell against most currencies. Commodity gains were led by Copper, Oil, and Lumber, while Natural Gas plunged.
Hedge Fund performance through mid-January was led by Event Driven strategies which advanced +1.79%; the HFRX Market Directional Index also gained +2.69% MTD, and the HFRX Global Hedge Fund Index gained +1.28%.

HFRX Event Driven Index gained +1.79%
HFRX Relative Value Arbitrage Index gained +1.76%
HFRX Equity Hedge Index gained +1.30%
HFRX Macro/CTA Index declined -0.14% MTD

Comments reference performance figures as of January 16th, 2023