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Matthias Knab, Opalesque for New Managers:

Hedge funds gained in June, posting their third consecutive monthly advance, driven by record equity levels, investor optimism over falling energy prices and a favorable resolution of the Iran military situation, and hedge fund exposure to the record SpaceX IPO.

The HFRI Fund Weighted Composite Index (FWC) advanced +0.4 percent in June, led by Equity Hedge and Event Driven, as reported today by HFR, the established global leader in the indexation, analysis and research of the global hedge fund industry. The 2Q 2026 return of +6.55 percent is the best quarter for hedge funds since 4Q 2020, and the 1H 2026 return of +7.6 percent is the best first six months to start a year since 2021.

"Hedge funds advanced for the month as equity markets eclipsed new records driven by AI gains, as well as contributions from exposure to the record SpaceX IPO, although managers were forced to navigate increasing risk off sentiment throughout the month driven by concerns about valuation and the sustainability of AI spending," said Kenneth J. Heinz, President of HFR.

"While these powerful AI and IPO trends drove industry gains in 1H, the macroeconomic outlook for 2H presents a mixed picture, with tension between continuation of these same drivers juxtaposed with an evolving risk profile as it pertains to AI spending, geopolitical risk, global supply chai......................

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