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The HFRI Fund Weighted Composite Index finished the month up an estimated +2.2 percent, the strongest monthly gain since January 2023 and the fifth strongest return in the trailing three-year period. The HFRI 500 also advanced +1.8 percent, while the HFR Cryptocurrency Index jumped +8.2 percent, and the HFR Risk Parity Vol 15 Index surged +7.8 percent.

Hedge funds focused on emerging markets also produced strong November performance, with the HFRI Emerging Markets (Total) Index gaining +3.6 percent, driven by the HFRI EM: Latin America Index, which surged +9.85 percent for the month.

Performance dispersion rose sharply in November, as the top decile of the HFRI FWC constituents advanced by an average of +12.9 percent, while the bottom decile fell by an average of -6.5 percent, representing a top/bottom dispersion of 19.4 percent for the month.

By comparison, the top/bottom performance dispersion in October was 12.9 percent. Through the first eleven months of the year, the top decile of FWC constituents gained +30.9 percent, while the bottom decile declined -16.5 percent, representing a top/bottom dispersion of 47.4 percent. Nearly seventy percent of hedge funds produced positive performance in November.

Equity Hedge funds, which invest long and short across specialized sub-strategies, led November strategy performance, with Quantitative Directional, Technology, Fundamental Value, and Healthcare leading EH sub-strategy gains. The HFRI 500 Equity Hedge Index jumped +4.3 percent (estimated) for the month, the strongest gain since February 2021, while the HFRI Equity Hedge (Total) Index also surged +4.1 percent. All EH sub-strategies posted gains for the month, led by the HFRI EH: Quantitative Directional Index, which vaulted +7.2 percent. Also producing strong performance, the HFRI EH: Fundamental Value Index jumped +4.8 percent, while the HFRI EH: Healthcare Index and HFRI EH: Technology Index each gained an estimated +4.6 percent in November.

Event-Driven strategies, which often focus on out-of-favor, deep value equity exposures and speculation on M&A situations, also surged in November as equities, credit and M&A all gained for the month, with the HFRI Event-Driven (Total) Index jumping +3.6 percent, the strongest monthly gain since February 2021. ED sub-strategy performance was driven by the HFRI ED: Activist Index, which surged +7.7 percent, and the HFRI ED: Special Situations Index, which jumped +4.45 percent. Also contributing to broad-based gains, the HFRI ED: Multi- Strategy Index advanced +3.1 percent.

Fixed income-based, interest rate-sensitive strategies also gained in November, as interest rates declined, and investors positioned as if the interest rate increasing cycle has concluded. The HFRI Relative Value (Total) Index advanced +1.5 percent (estimated) for the month, led by sovereign bond and multi-strategy exposures, with the HFRI RV: FI-Sovereign Index surging +4.1 percent, and the HFRI RV: Multi-Strategy jumping +2.9 percent. Also contributing to RVA sub-strategy gains, the HFRI RV: FI-Asset Backed Index added +1.8 percent for the month.

After gaining through the volatile September/October equity market declines, Macro strategies declined in November as interest rates and commodities fell while risk tolerance increased, with the HFRI Macro (Total) Index falling -1.6 percent (estimated) for the month. Macro sub-strategy declines were led by quantitative, trend following CTA strategies, with the HFRI Macro: Systematic Diversified Index falling -3.5 percent in November. Partially offsetting these declines, HFRI Macro: Discretionary Thematic Index gained +1.5 percent, and the HFRI Macro: Active Trading Index advanced +1.2 percent for the month.

Liquid Alternative UCITS strategies produced gains in November, led by the HFRX Market Directional Index gaining +3.1 percent, while the HFRX Global Hedge Fund Index advanced +1.1 percent. Strategy gains were led by the HFRX Equity Hedge Index, which surged +2.93 percent, while the HFRX Event Driven Index advanced +1.39 percent.

The HFRI Diversity Index surged an estimated +5.4 percent in November, while the HFRI Women Index advanced +2.0 percent.