Hedge Funds Slip 0.36% In April

May 8 2012 | 8:24am ET

Amid investor concerns about the European sovereign debt crisis and uncertainty surrounding European elections, the Hedge Fund Research’s HFRI Weighted Composite Index fell 0.36% in April, trimming its year-to-date gains to 4.4%.

The decline follows the index’s Q1 gain of 4.79%, its best first quarter performance since 2006.

April saw mixed results from various hedge fund strategies—relative value funds gained 0.21% on the month, with positive contributions from fixed income arbitrage, volatility arbitrage and asset-backed exposures.

The weakest performance came from equity hedge strategies, down 0.57% on the month (although still up 6.33% YTD).

Macro strategies were down 0.35% in April as declines across systematic (CTA) and discretionary strategies only partially offset gains in active trading funds. Event driven strategies slipped 0.16%, as gains by activist and credit arbitrage strategies were offset by losses in distressed and special situations funds.

Funds of hedge funds shed 0.26% in April.

"April hedge fund performance marked a transition from the equity beta driven gains in the first quarter to an environment more similar to the risk-averse environment which dominated 2011," stated Kenneth J. Heinz, president of HFR. "While the transition has contributed to modest declines in equity and macro strategies in April, many funds which have maintained conservative positioning are now in the process of adjusting exposures through the current environment. Hedge fund gains throughout 2012 are likely to continue across a more diverse continuum of  assets and strategies, with these complementing core and tactical equity  markets exposures industry wide."


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

A Hard Look At Your ‘Soft’ Hedge Fund Marketing Information

Dec 8 2016 | 9:03pm ET

Conventional wisdom holds that due diligence examines quantitative as well as qualitative...

 

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