(Reuters] Macro funds posted their best quarter-to-quarter performance in 1993. This was thanks to the skillful management of high-volatility markets.

According to macro funds indexes, macro hedge funds that bet on macroeconomics trends rose 7.7% during the third quarter. This was due to skyrocketing commodity prices and rising interest rates.

HFR president Kenneth J. Heinz said, “The powerful market dynamics that include inflation/interest rate and historical geopolitical risk have contributed to enormous dislocations across commodity-, equity-, and fixed income markets, as well unprecedented macro and geopolitical uncertainy, which has required managers to navigate incredible and fluid volatility.”

The hedge fund industry suffered in the second quarter 2021. However, the end of the year was positive with gains of 7.7%.

Overall, hedge funds ended the first quarter of this year 0.30% down, the HFRI Fund Weighted Composite Index showed, outperforming the S&P index, which declined 4.60%, the report showed.

In the first quarter, both equity hedge and event driven funds indexes suffered losses.