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In December, global financial markets declined to conclude sharp losses for 2022 as the Federal Reserve raised interest rates, increasing the likelihood of an economic recession in 2023. The US led Equity market declines with Technology posting steep declines for the month and year; European and Asian indices posted more moderate declines. Interest rates rose as the Federal Reserve indicated additional rate increases would be necessary to reduce generational inflation. The US Dollar was mixed against major currencies, falling against the Euro and Swiss Franc while rising against the British Pound and Japanese Yen. Natural Gas, Aluminum, and Lumber led Commodity declines offset by gains in Silver, Coffee, and Lean Hogs.
The HFRU Hedge Fund Composite Index posted a decline of -0.82% in December.

HFRU Equity Hedge Index declined -0.94%
HFRU Event Driven Index posted a decline of -0.37%
HFRU Macro Index declined -0.67%
HFRU Relative Value Arbitrage Index declined -0.88%

Comments reference performance as reported on December 30, 2022.