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).