Hedge funds saw mixed results in February as market volatility surged amid trade tariff uncertainties. Fixed-income strategies performed well, benefiting from falling interest rates, while macro and equity hedge funds struggled due to sharp declines in technology stocks.
The HFRI Fund Weighted Composite Index fell 0.47%, with relative value arbitrage and event-driven strategies posting gains that were outweighed by broader declines. Cryptocurrency funds took a significant hit, with the HFR Cryptocurrency Index dropping 16.8% as volatility spiked.
Meanwhile, event-driven funds gained modestly, and fixed-income strategies extended their winning streak, marking another month of positive returns.
Finsum: As hedge funds navigate volatile conditions, their ability to adapt remains key to delivering returns in uncertain markets.