HFR Interim Update: Hedge Funds Steady Through Mid-April

Apr 24 2017 | 6:41pm ET

Hedge funds remained steady through mid-April despite uncertainty on global financial markets related to European elections and an ongoing attempt to discern details of President Trump’s tax reform policy, according to a flash update from Hedge Fund Research.

The company’s HFRX Absolute Return Index was up +0.21% for the month through April 20, while its HFRX Global Hedge Fund Index was basically unchanged for the period. 

Other highlights from HFR’s update:

  • The HFRX Event Driven Index posted a gain of +0.19% through mid-April from gains in Distressed/Restructuring, Merger Arbitrage and Special Situations equity managers. The HFRX Distressed Index posted a gain of +0.51% for the period from exposure to the U.S. Consumer and Financial sectors. The HFRX Merger Arbitrage Index gained +0.31% for the period with core exposures to Simmons First National Corp/ Southwest Bancorp, Suffolk/People's United Financial, Mars/VCA, JAB/Panera Bread, CenturyLink/Level 3 Communications, LANXESS/Chemtura and Energy Transfer/Sunoco Logistics transactions. 
  • The HFRX Relative Value Arbitrage Index posted a gain of +0.12% through mid-April from gains in Convertible Arbitrage, Multi-Strategy and Mortgage Backed strategies. The HFRX Convertible Arbitrage Index gained +0.22% Index from gains in increased volatility and lower yields. The HFRX RV: Multi-Strategy Index gained +0.17% through mid-month from gains in Fixed Income and Mortgage-Backed Securities strategies. 
  • The HFRX Equity Hedge Index fell -0.16% through mid-April as global equity markets posted declines during the period while U.S. growth equities outperformed value. The HFRX Fundamental Growth Index posted a gain of +0.19% from gains in Emerging Asia, MENA and Latin America exposure. The HFRX Market Neutral Index declined -0.43% from declines in mean reverting, factor based strategies and fundamental managers, while the HFRX Fundamental Value Index posted a decline of -0.28% for the period. 
  • The HFRX Macro/CTA Index dipped -0.24% for the period due to declines in systematic trend-following managers that were only partially offset by gains in emerging markets strategies. Commodities were mixed through mid-month, with gains in Gold, Platinum and Cattle offset by declined in Oil, Natural Gas, Copper, Cocoa, Coffee & Wheat while the USD fell against most major currencies. 
  • The HFRX Emerging Markets Index posted a gain of +0.82% from exposure to Emerging Asia, MENA and Latin America. 

Established in 1992, HFR is a global leader in specializing in the indexation and analysis of hedge funds. The company produces the HFRI, HFRX and HFRU Indices, industry benchmarks for global hedge fund performance, and calculates over 100 indices ranging from industry-aggregate levels down to specific, niche areas of sub-strategy and regional investment focus.

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