Asset managers ever more reliant on artificial intelligence (AI) to support their investment decisions are becoming more vulnerable to weaker data that informs the technology.
HFR writes that hedge funds posted mixed performance in September as strength in Macro and CTA strategies were offset by weakness across other strategies as interest rates experienced an unprecedented spike while global bond markets came under pressure for the second consecutive month.
HFR writes that Emerging Markets hedge funds advanced YTD through August 2026, reversing sharp declines in March, as global interest rates surged to 20-year highs and oil prices rose with extreme daily volatility as the outlook for resolution of the Iran military conflict remained unclear.
HFR writes that hedge funds gained in August, fully recovering their July decline, as global bond markets came under pressure and interest rates rose to historic highs, while the outlook for resolution of the Iran military conflict remained cloudy.
We all know that past performance is no guide to the future, yet investors often have little else on which to base allocation decisions than examining fund managers’ track records.
Hedge funds posted a historic performance surge in April, reversing a sharp March decline, with the HFRI generating its strongest gain since November 2020 and the second largest return since May 2009, according to Ken Heinz, HFR President.
Hedge funds posted a sharp decline in March as the Iran military conflict escalated and oil prices spiked, writes HFR, resulting in a historic surge in volatility and steep declines across equity and fixed income markets as investors re-priced risk and positioned for higher interest rates in 2026.
EFAMA has published its latest International Quarterly Statistical Release for Q4 2025, with Hailin Yang, Senior Data Analyst at EFAMA, commenting: “Global fund flows surged to a record high during the fourth quarter of 2025, supported by strong performance in both equity and bond markets. Several equity indices finished the year near record highs, while interest rate cuts by major central banks enhanced the attractiveness of bond funds.”
New hedge fund launches accelerated into 2026 while liquidations remained near historic lows, as investors positioned for increasing geopolitical risk, AI and cryptocurrency volatility, and uncertain economic growth and inflation in 2026 according to HFR.
Hedge fund performance gains accelerated through February, again driven by Macro and Equity Hedge funds, as complex risks evolved throughout the month, according to HFR.
