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In November, global financial markets posted strong gains as measures of US inflation declined, and investors discounted an end to the cycle of US Federal Reserve interest rate increases. Equity markets surged to the best monthly gain since July of 2022, led by Technology, Cyclicals, and Financials; regional equity markets also gained, led by Germany, Spain, Brazil, and Korea. Interest rates declined on falling inflation while the US Dollar declined against the British Pound Sterling, Euro, and Swiss Franc. Commodities were mixed with Oil and Natural gas leading Energy declines. Silver led Metals gains and Coffee led Agricultural gains.  
Hedge Funds gained for the month led by Equity Hedge strategies, with the HFRX Global Hedge Fund Index gaining +1.13% for the month.
HFRX Equity Hedge Index gained +2.93% for the month from gains in Equity Market Neutral, Fundamental Growth, and Fundamental Value strategies. The HFRX Fundamental Growth Index gained +3.76% from gains concentrated in small-cap US & European equities. The HFRX Fundamental Value Index posted a gain of +2.65% from gains in exposure to large-cap US & European equities. The HFRX Market Neutral Index gained +1.32% from gains in mean reverting, factor-based strategies.
HFRX Event Driven Index gained +1.39% for November from gains in Merger Arbitrage strategies and Special Situations equity strategies. The HFRX Merger Arbitrage Index gained +2.00% for the month as global equities gained across geographies and sectors. The HFRX Special Situations Index gained +1.35% from gains in exposure to global catalyst-driven, fundamental value equities.
HFRX Relative Value Index posted a gain of +0.81% for November from gains in Convertible Arbitrage strategies and Multi-Strategy managers. The HFRX Convertible Arbitrage Index gained +4.57% as volatility fell through November. The HFRX RV: Multi-Strategy Index gained +0.47% as interest rates declined on falling inflation.
HFRX Macro/CTA Index declined -1.74% for the month led by declines in systematic trend-following managers. The HFRX Macro Systematic/CTA Index declined -3.97% in October as the UD Dollar declined against most currencies. Commodities saw a mixed performance, with Natural Gas and Oil leading Energy declines. Silver led metals gains and Coffee led Agricultural commodity gains.
 
Comments reference performance figures as of November 30, 2023