HFRX Global Hedge Fund Index Gains 0.42% In April

May 2 2017 | 11:02pm ET

Hedge funds benefitted from equity market gains and currency volatility surrounding the French election last month, according to final April data from Hedge Fund Research.

HFR’s widely followed HFRX Global Hedge Fund Index rose +0.42% during the month, while its HFRX Equal Weighted Strategies Index and HFRX Absolute Return Index rose +0.44% and +0.31%, respectively, for the period. 

Equity markets were the primary drivers last month, HFR said in a statement, as U.S. technology biotechnology, healthcare and cyclical stocks led the way amidst declines in energy & oil services. Interest rates were little changed during the month, while the U.S. Dollar fell against the euro, sterling and Swiss franc. 

Key highlights from HFR’s April 2017 Performance report:

  • The HFRX Equity Hedge Index posted a gain of +0.72% for April as most developed equity markets posted gains during the period, with the exception of Great Britain. Emerging markets were mixed, with leadership of Turkey and South Africa while China fell. The HFRX Fundamental Growth Index posted a gain of +0.88% from gains in Emerging Asia, Basic Materials and Consumer sector exposure. The HFRX Fundamental Value Index posted a gain of +0.71% for the period from exposure to the US large-cap Communications and Financial sectors as well as European equity. The HFRX Market Neutral Index gained +0.12% from mixed performance of mean reverting, factor based strategies and fundamental managers. 
  • The HFRX Event Driven Index posted a gain of +0.70% for the month from gains in Distressed/Restructuring, Merger Arbitrage and Special Situations equity managers. The HFRX Special Situations Index posted a gain of +0.75% from core positioning in Actelion, Yahoo, Alibaba, Penn West, ClubCorp, Alere and Reynolds American. The HFRX Distressed Index posted a gain of +0.59% for the period from exposure to the U.S. Consumer, Financial and Energy/Basic Materials sectors. The HFRX Merger Arbitrage Index gained +0.45% for the period with core exposures to Simmons First National Corp/Southwest Bancorp, BD/Bard, 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 +0.20% in April from gains in Convertible Arbitrage, Multi-Strategy and Mortgage Backed strategies. The HFRX Convertible Arbitrage Index gained +0.77% as yields remained basically unchanged and volatility declined. The HFRX RV: Multi-Strategy Index gained +0.20% for the month from gains in Fixed Income and Mortgage-Backed Securities strategies. 
  • The HFRX Macro/CTA Index posted a narrow decline of -0.07% for April as gains in emerging markets strategies were only partially offset by mixed performance in systematic trend-following managers. The HFRX Systematic Diversified Index declined -0.35% as Commodities were mostly down for the month and the USD fell. The HFRX Emerging Markets Index posted a gain of +0.81% 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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