Hedge Funds Strong In April

May 8 2007 | 11:32am ET

A pair of indices show that hedge funds had a strong April on the back of soaring global equities markets, but their lead on the broader markets has been whittled to an almost negligible amount.

HedgeFund.net’s Hedge Fund Aggregate Average posted its best month in over a year, and its best April since 1999, rising 2.61% on the month. The index is now up 5.21% year-to-date. But a rising tide lifts all (or most) boats, and this tide lifted the Standard & Poor’s 500 Index higher, with the broad-market benchmark jumping 4.43% in April to reach 5.1% year-to-date, all but wiping out the lead hedge funds built in the first quarter.

The top-performing strategies were equity long/short and event-driven, with the former rising 2.46% (5.8% YTD) in the HFN index and 2.74% (6.92% YTD) in the Dow Jones Hedge Fund Strategy Benchmarks, while the latter added 3.18% (8.49% YTD) according to HFN and 2.34% (5.68% YTD) according to Dow Jones.

Other strong performers in the HFN indices included emerging markets (3.58%, 7.66% YTD) and energy sector (3.55%, 7.4% YTD). Regionally, Asian and Latin American funds were good bets in April, at 5.09% (7.96% YTD) and 4.37% (10.95% YTD), respectively.

Both sets of returns showed all strategies in positive territory both in April and year-to-date.


In Depth

Q&A: Schroders’ Forest Discusses Multi-Asset Investments On Eve Of U.S. Launch

Jul 17 2014 | 8:05am ET

Global investment manager Schroders has $446 billion in assets under management, $...

Lifestyle

Einhorns Busts At WSOP, Finishes In 173rd

Jul 15 2014 | 10:48am ET

Greenlight Capital founder David Einhorn’s World Series of Poker won’t end at...

Guest Contributor

Common Risk Parity Misperceptions

Jul 16 2014 | 11:02am ET

Over the past few years, risk parity has become a component of most investors’...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note