Hedge Funds Double 2011 Returns In April

May 11 2011 | 12:09pm ET

Hedge funds returned 1.4% in the first quarter, but jumped 1.69% in the first month of the second, according to Greenwich Alternative Investments.

The Greenwich Global Hedge Fund Index more than doubled its year-to-date return last month to 3.25%. Still, the benchmark badly trailed the Standard & Poor's 500 Index, which returned almost 3% in April alone and is up about 9% on the year.

With two exceptions, all of Greenwich AI's strategy and substrategy indices were in the black last month, led by directional trading funds—and especially futures funds. The former rose 3.05% last month (2.46% year-to-date) and the latter 3.66% (2.94% YTD).

Multi-strategy event-driven funds also did well, adding 2.08% to reach 4.82% on the year, the best mark of any strategy or substrategy tracked by Greenwich AI.

"Hedge funds continued to move higher in April driven by strength in equities and commodities," Clint Binkley, senior vice president at Greenwich AI, said. "Nearly all hedge fund strategies are at new highs for the year and continue to be successful in a market dominated by headline risk and uncertainty."

Two that are not are other arbitrage funds (excluding convertible and fixed-income), which fell 1.17% on the month and are down 0.77% on the year. Short-biased funds also wilted amidst the market rally, dropping a further 1% to fall to 4.15% down.


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR