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Global financial markets surged through mid-December extending strong November gains. The US Federal Reserve indicated a near-term end to the interest rate-increasing cycle as inflationary pressures eased, with possible interest rate reductions in 2024. Global equities and fixed income markets gained on falling inflation and interest rates, with small caps, Technology, and Cyclicals leading equities; France, India, Sweden, and Australia led regional gains. Interest rates posted sharp declines across all maturities as investors positioned for interest rate cuts in 2024, while the US Dollar posted sharp declines against the Swiss Franc, British Pound, and Brazilian Real but surged against the Japanese Yen. Oil & Natural Gas plunged to lead Energy commodity declines. Metals saw a mixed performance, with Aluminum gains offsetting Silver declines. Sugar fell while Wheat led Agricultural commodities.
The HFRX Global Hedge Fund Index gained +0.82% through mid-December.

HFRX Relative Value Index gained +1.73%
HFRX Equity Hedge Index gained +0.83%
HFRX Event Driven Index gained +0.42%
HFRX Macro Index was flat for the month.

Comments reference performance figures as of December 15th, 2023