<p><span>Hedge funds surged to begin 2023 as risk-on sentiment dominated financial markets and investors positioned for a moderation of inflationary pressures and interest rate increases through mid-2023, despite continued uncertainty over weakening economic growth. The investable </span><a target=" blank" href="https://www.hfr.com/family-indices/hfri-500-hedge-fund-indices">HFRI 500 Fund Weighted Composite Index</a><span> jumped +2.5 percent in January, led by directional Equity Hedge and Event Driven strategies, according to data released today by HFR</span><span>®</span><span>, the established global leader in the indexation, analysis and research of the global hedge fund industry.</span></p>
<p><span>Hedge funds gained in the fourth quarter to conclude a volatile year, with managers navigating a complicated dynamic of macroeconomic and geopolitical risks driven by generational inflation, sharp increases in interest rates, falling equity markets, a weakening global economy, an uncertain trajectory of pandemic/quarantine impacts and the collapse of the cryptocurrency market. Total global hedge fund capital finished the year at $3.83 trillion, a quarterly increase of $44 billion, as reported today by HFR</span><span>®</span><span>, the established global leader in the indexation, analysis and research of the global hedge fund industry, in the latest release of the </span><i><a title="HFR Media Reference Guide 2023.01.20.pdf" href="/ assets/files/HFR-Media-Reference-Guide-2023.01.20.pdf">HFR Global Hedge Fund Industry Report</a></i><span>.</span></p>