Hedge Funds Continue Rally In April

May 15 2007 | 2:25pm ET

Hedge funds did well in April, according to the Credit Suisse/Tremont Hedge Fund Index, but only about half as well as the broader equity markets. The CS/Tremont index rose 2.02% last month and has gained 5.43% year-to-date, but the Standard & Poor’s 500 has closed the gap, soaring 4.43% in April to reach 5.1% in 2007. Investable funds rose 1.68% on the month (4.02% YTD).

“Overall, this market environment has been favorable for the majority of hedge fund strategies,” Oliver Schupp, president of Credit Suisse Index Co., said. “Managed futures, in particular, was up 4.02% in April as managers generally profited from currencies as the U.S. dollar and Japanese yen weakened and the euro strengthened.”

The strategy may have had a good month—it was even better among investable funds, which rose 4.44%—but it has still been a pretty dismal year, with managed futures remaining down 0.87% year-to-date (investable managed futures funds are down 1.71% year-to-date).

Unsurprisingly, with global equity markets on a tear, funds with big short portfolios suffered in April. Dedicated short-bias funds tumbled 2.74% in April (down 1.14% YTD); investable short funds did even worse (down 3.33% on the month and 2.34% YTD). But all other strategies tracked by CS were in positive territory.

Other than managed futures, the best performers included long/short equity (up 2.9% in April, 6.79% YTD), emerging markets (2.24%, 5.51% YTD) and risk arbitrage (2.15%, 4.87% YTD). Event-driven strategies remain the best performers in 2007 (1.52%, 6.55% YTD), especially event-driven multi-strategy, which added 1.44% in April and is up a robust 7.12% this year.


In Depth

Q&A: Star Mountain's Brett Hickey On Investing In 'The Growth Engine Of America'

Sep 22 2017 | 5:06pm ET

Lower middle-market companies form the economic fabric of the nation, but they can...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Don’t Overlook These 6 Hybrid Cloud Concerns

Sep 14 2017 | 6:27pm ET

Cloud-based technology solutions have made tremendous inroads into the alternative...

 

From the current issue of

With NFL season on the horizon, it’s time to take a look at our Fantasy Football value picks. Last year, we nailed it on Drew Brees, Jordan Howard, Frank Gore and Dwayne Allen. We missed pretty badly on Duke Johnson, Demaryius Thomas, Mohammed Sanu and Eli Manning.