HFRU Composite Up 0.5% in April, 5.11% YTD

May 5 2015 | 10:33am ET

The HFRU Hedge Fund Composite Index, which measures UCITS compliant hedge funds, rose 0.5% in April, bringing its year-to-date return to +5.11%.

Three of the composite’s four components were positive for the month, according to Hedge Fund Research, the index provider. 

Equity funds posted the strongest gains for the second consecutive month, rising +1.45% during the month and extending 1Q record gains to +7.4% YTD, which already tops the HFRU Equity Hedge Index’s 4-year annualized return of +5.33%.

Equity sector gains were led by Energy & Commodity companies, partially offset by declines in Biotechnology and Small-Cap stocks, while Emerging Markets experienced broad advances, noted HFR.  

HFRU’s Event Driven Index posted a gain of +0.44% for the month, as global M&A activity accelerated. Special Situations and Merger Arbitrage managers benefited from an increase in global deal activity in both Healthcare and Consumer Products. 

Relative value arbitrage funds posted gains of +0.23% for April as U.S. & European yields rose across most maturities during the month while high yield credit tightened. The Index had positive contributions from Global Convertible, credit multi-strategy managers and Emerging Markets. 

Macro funds faced the greatest pressure in April, with HFRU’s Macro Index posting a decline of -1.01% as gains in Emerging Market strategies were offset by steep declines in CTAs and weakness in currency & commodity positioning. However, stronger performance in Q1 means the Macro index is still up +3.25% YTD.

The HFRU Composite Index tracks more than 500 UCITS-compliant funds managing at least $10 million or more than a six-month track record. The measure rebalances quarterly and was created in 2008, according to the company’s website. 

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