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MENA hedge funds lead emerging markets performance in 2026
The HFRI MENA Index is up 18.7% year-to-date through August, while the broader HFRI Emerging Markets (Total) Index gained 8.2% over the first eight months of 2026.
Hedge funds focused on the Middle East and North Africa led emerging markets performance through August, according to data from HFR cited by Hedgeweek. The HFRI MENA Index rose 18.7% year-to-date as managers worked through heightened geopolitical tensions, volatile oil prices, and a sharp rise in global interest rates.
HFR data released alongside its latest Asian and Emerging Markets hedge fund industry reports showed the HFRI Emerging Markets (Total) Index gained 8.2% over the first eight months of 2026. The outlook for an end to the Iran military conflict remained uncertain, contributing to extreme moves in energy markets and broader financial assets.
The same set of HFR figures showed Japan as another strong-performing market, with the HFRI Japan Index up 8.8% year-to-date through August. HFR said managers across emerging markets and Asia benefited from opportunities tied to rising bond yields, geopolitical developments, and heightened volatility in technology and artificial intelligence-related equities.
Elsewhere in emerging markets, performance was more subdued, with the HFRI EM: China Index up 2.8% year-to-date and the HFRI EM: Latin America Index gaining 2.6%. The HFRI India Index was down 3.3% over the same period.