Tuesday, 31 May 2016
Last updated 3 days ago
May 3 2013 | 9:40am ET
Hedge funds opened the second quarter with gains—but once again failed to match or exceed the returns of the broader markets.
The Credit Suisse Liquid Alternative Beta Index rose 1.11% in April, its third positive month in four this year. The industry replication benchmark lagged the Standard & Poor's 500 Index, which rose 1.81% on the month, and badly lags the S&P500 on the year: The LAB Index is up just 3.3%, which the market index is up double-digits.
Not all hedge fund strategies, however, fell short against the market last month. Long/short funds rose an average of 2.43% (2.06% year-to-date), the LAB suite shows. Managed futures funds also topped the S&P500, up 2.01% (5.88% YTD, the best through four months).
Event-driven funds added an average of 0.93% (4.35% YTD) and global strategies 0.86% (3.25% YTD). Merger arbitrage funds lost ground, dropping an average of 0.47% (up 4.2% YTD).