Monthly Hedge Fund Update – September 2026: Risk assets generated mixed performance in September. During the month, the shifting expectations for US interest rate policy, heightened uncertainty in the Middle East and a strong US Dollar provided headwinds for markets.
As we enter Q4, AI continues to drive economic growth, market leadership and political debate. While productivity gains from AI are widely anticipated, their scale and timing remain difficult to quantify. The near-term impact on labor appears broadly positive for now, with skilled engineers and IT developers in high demand as companies build infrastructure and integrate AI into their operations.
The fixed income environment has been particularly painful for investors in recent months, as long-term yields increased to multiyear highs amid geopolitical and economic turbulence. Slow progress on inflation, energy shocks and heavy issuance were among the headwinds, along with a hawkish turn by central banks.