Saturday, 26 July 2014
Last updated 19 hours ago
May 10 2011 | 1:30pm ET
Hedge funds enjoyed broad, if unimpressive, gains in April, a pair of industry indices show.
The average hedge fund added 1.86% on the month, according to Hedge Fund Research's HFRI Fund Weighted Composite Index. While hedge funds badly trailed the Standard & Poor's 500 Index's nearly 3% return, even the Lyxor Hedge Fund Index, generally a pessimistic benchmark, rose 1.37% in April.
The former index is up 3.59% on the year and the latter 2.14%.
Both sets of indices showed gains for most hedge fund strategies; indeed, just two of the 23 strategies and substrategies tracked by the HFRI indices lost ground in April.
Systematic diversified funds led the way for HFRI, rising 4.81% on the month (3.39% year-to-date), while commodity trading advisers were the stars for Lyxor, with long-term managers adding 3.61% and short-term managers 1.87%.
Both sets of indices agreed that it was a good month for macro funds: The HFRI Macro (Total) Index rose 3.36% (2.76% YTD), while the Lyxor Global Macro Index was up 1.81%.
Other strong performers, according to the HFRI indices, included technology and healthcare funds (3.04% in April, 7.28% YTD). Emerging markets funds rose 1.63% (2.62% YTD), equity hedge funds 1.21% (3.48% YTD), event-driven funds 1.15% (4.71% YTD) and relative value funds 0.8% (3.13% YTD).
Only fixed-income convertible arbitrage funds and short-bias funds took a hit in April, according to HFR. The former shed 0.89% (up 1.8% YTD), while the latter slumped 3.15% (down 8.69% YTD).
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…