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 HFRI 500 Fund Weighted Composite Index jumped +2.5 percent in January, led by directional Equity Hedge and Event Driven strategies, according to data released today by HFR®, the established global leader in the indexation, analysis and research of the global hedge fund industry.