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Hedge funds rebound in August as macro and CTA strategies surge
The HFRI Macro (Total) Index rose 4.1% in August, while the HFRI Macro: Commodity Index jumped 10%, its biggest monthly gain since January 2008.
Hedge funds staged a strong recovery in August as rising interest rates and geopolitical tensions created opportunities for both macro managers and systematic strategies, according to the latest data from HFR, cited by Hedgeweek. The HFRI Fund Weighted Composite Index climbed 1.7% during the month, fully reversing a July decline.
Macro strategies led the advance. The HFRI Macro (Total) Index gained 4.1% in August, and commodity-focused hedge fund exposure posted its strongest monthly performance on record, with the HFRI Macro: Commodity Index surging 10%, its biggest gain since the index began in January 2008.
Hedgeweek attributed the commodity outperformance to disruption across energy and commodity markets, including an escalation in the Iran conflict, shipping disruptions, and higher volatility. Other macro segments also rose, with the HFRI Macro: Active Trading Index up 4.5% and the Systematic Diversified/CTA Index increasing 3.45%.
Equity hedging strategies also benefited from the volatile backdrop. The HFRI Equity Hedge (Total) Index advanced 1.5%, led by energy and basic materials managers, while the HFRI Cryptocurrency Index rallied 19.4% for its strongest monthly performance since November 2024, Hedgeweek reported.