DB: HF Returns Flat After 'Challenging' April

May 15 2014 | 1:30pm ET

April was “challenging” for hedge funds, according to the latest Monthly Hedge Fund Trends report from Deutsche Bank Markets Prime Finance.

The median fund was flat (0.00%) over the period which saw an unusually wide dispersion of returns—particularly among equity long/short strategies. Credit strategies were the best performers, adding 0.51% on the month, followed by multi-strategy funds, which were up 0.42%.

DB's team met with allocators in Germany and reports that sentiment towards hedge funds remains “cautiously optimistic” with investors looking mainly for discretionary macro and fixed-income relative-value strategies.
In the U.S., said the report, institutional allocators, family offices and funds of funds, are generally maintaining allocations, but remain open to best ideas. Large hedge fund allocators in Australia have reaffirmed their commitment to hedge funds with several institutions growing their hedge fund specialist teams.
Also noteworthy, the SEC announced last month it would examine 25 mutual funds running riskier hedge fund strategies to ensure they were complying with leverage and liquidity rules.
The SEC also issued a risk alert on cyber security and plans to examine more than 50 investment advisers and broker-dealers regarding their level of preparedness.

In the UK, reports DB, the FCA published survey results showing that country's top 20 firms control over 80% of hedge fund assets under management. 

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