Macro hedge funds and managed futures strategies were among the strongest performers in August as sharp moves across bond, currency and other markets created opportunities for managers navigating a volatile policy environment, according to a report by Institutional Investor citing data from PivotalPath.
The Global Macro and Managed Futures indices each gained 2.4% during the month, more than twice the 1.1% return generated by the broader PivotalPath Composite Index.
Within macro strategies, discretionary managers returned 2.5%, while quantitative macro funds gained 2%. For the first eight months of the year, Global Macro was up 6.8%, while Managed Futures had generated a 9% return.
The performance came during a particularly turbulent period for US government bonds and currencies, as Treasury Secretary Scott Bessent sought to contain rising government borrowing costs. Macro managers adjusted positions across the US dollar and other currencies, Treasuries, gold and cryptocurrencies as markets reacted to shifting policy expectations.
Bessent said in August that the US government would “at least double” its purchases of longer-dated government debt after Treasury yields climbed to record levels amid renewed inflation concerns. Policy efforts also extended to support for the Japanese yen, adding another source of volatility for currency traders.
Despite the turbulence in fixed income and foreign exchange, equity-focused hedge funds also delivered positive returns. The PivotalPath Equity Diversified Index gained 1.6% in August, while the Equity Sector Index advanced 1.8%.
Asian equity strategies led the regional equity categories, returning 3.1% for the month. European equity funds gained 2.5%.
The broader hedge fund picture for 2026 remains mixed, however, with several equity strategies outperforming macro funds over the year to date. Through August, Equity Diversified was up 8.9%, while Equity Sector had gained 13.7%.
Multi-sector strategies returned 6.2% over the same period, while the PivotalPath Relative Value Index was up 5.2%.
