Eurekahedge: Hedge Fund Index Gains 0.54% In April

May 9 2017 | 11:12pm ET

Hedge funds posted their fourth consecutive month of gains so far this year in April, according to a flash reading of Eurekahedge’s Hedge Fund Index, although they still underperformed broader underlying markets during the month. 

The company’s widely followed measure was up 0.54% during the month compared to a 1.17% gain in the MSCI AC World Index (Local) Index over the same period, Eurekahedge said in a statement. On a year to-date basis, hedge funds are up 2.90% while underlying markets are +6.29%. For the month, Latin American hedge fund managers led the table at +7.54%, followed by their Asia ex-Japan and emerging markets counterparts with gains of 7.01% and 6.83%, respectively. 

Other highlights from the April 2017 flash update:

  • Among developed mandates, European hedge funds were up 0.99%, followed by North American and Japanese peers with 0.78% and 0.49% respectively. On a year-to-date basis, European managers were up 3.30% followed by North American and Japanese managers who posted gains of 2.75% and 2.14% respectively.
  • Among strategies, distressed debt hedge funds posted the best gains for the month, up 1.61%, outperforming the U.S. high yield market which gained 1.10%. Event driven and multi-strategy hedge fund managers followed with gains of 1.30% and 1.05% respectively. 
  • CTA/managed futures hedge fund managers dipped 0.21% in April with underlying commodity-focused hedge funds leading much of the weakness, down 1.62% for the month. On a year-to-date basis, CTA/managed futures hedge fund managers declined 0.76% with commodity-focused hedge funds down 1.27%.
  • Frontier markets, as represented by the Eurekahedge Frontier Markets Hedge Fund Index was up 1.39% for the month. 
  • The Eurekahedge Long Short Equities Hedge Fund Index gained 0.93% during the month with strength led by underlying equity long-bias hedge funds which gained 1.25% over the same period. On a year-to-date basis, long/short equities hedge fund managers gained 4.68% with underlying equity long bias hedge fund managers at 6.79% YTD. 
  • Asia ex-Japan mandated hedge funds outshone regional peers, gaining 1.18% during the month. Underlying Greater China and India hedge fund managers were up 0.83% and 3.45% over the same period respectively. On a year-to-date basis, Greater China and India mandated hedge funds posted impressive gains, up 8.60% and 14.62% respectively.
  • Among volatility-focused hedge funds, short volatility hedge funds topped the table for April, gaining 1.13% while long-volatility hedge funds posted the steepest decline, down 1.25%. On a year-to-date basis, short volatility hedge funds gained 4.71% while tail risk hedge funds were down 5.73%.

Eurekahedge’s data was based on 33.67% of funds which have reported April 2017 returns as at 9 May 2017. The company tracks asset flows, hedge fund performance and regional key trends across the hedge fund universe, tracking more than 130 data points on more than 24,000 alternative funds in its database.


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