Gains were driven by rising equity markets, falling bond yields, and expectations for interest rate cuts, as well as the continuing evolution of geopolitical risks, including developments on trade/tariff negotiations, the US Federal Reserve, and continued efforts to resolve ongoing military conflicts, Chicago-headquartered HFR said this week.

The HFRI Equity Hedge (Total) Index led strategy gains, rising by an estimated 3.3 per cent for the month; the HFRI Event-Driven (Total) Index advanced 2.0 per cent. The HFR Cryptocurrency Index gained 2.5 per cent in August.

Equity hedge (EH) funds, which invest long and short across specialised sub-strategies, rose by 3.3 per cent for the month.

Event-driven (ED) strategies, which often focus on unloved, deep value equity exposures and speculation on M&A situations, also advanced in August. The HFRI Event-Driven (Total) Index added an estimated 2.0 per cent for the month.

Uncorrelated macro strategies gained last month: the HFRI Macro (Total) Index advanced an estimated 1.5 per cent.

Big in Japan
HFRI Japan Index has delivered the largest year-to-date gains of all global regional categories, at 16.34 per cent, figures showed.

“Strong hedge funds gains accelerated in August as global equites eclipsed record highs and investors positioned for lower US interest rates while the uncertainty regarding tariff negotiations continued to evolve,” Ken Heinz, HFR president, said in a statement.

At the end of July, Ray Dalio, the founder of Bridgewater Associates, the world’s largest hedge fund business, officially sold his remaining ownership stake and resigned from the firm’s board (Reuters, 31 July, 2025), wrapping up a transition process that began in 2017. Other prominent hedge fund businesses by AuM are Man Group; Elliott Investment Management; Millennium Management; Citadel; The Children's Investment Fund Management (TCI); DE Shaw & Co; Two Sigma; Goldman Sachs Asset Managemen; and Farallon Capital.