Market Rally Drives Strong Hedge Fund Returns In April

May 15 2008 | 12:18pm ET

Hedge funds rode strong markets to a positive return last month, reversing some of the declines suffered during a disastrous March.

Long/short equity funds led the way as the Standard & Poor’s 500 Index rose 4.87%, returning 2.2% on the month, though it remains down 1.99% on the year. Fixed-income arbitrage also had a strong April, rising 2.07% on the year (down 4.85% year-to-date) and convertible arbitrage finished April in positive ground (1.11%, down 6.62% YTD).

“After a difficult first quarter for global financial markets, hedge funds rebounded in April, driven primarily by gains in the Long/Short Equity sector,” Oliver Schupp, president of Credit Suisse Index Co., said. “Stronger than expected earnings posted in the financial and retail sectors helped boost investor confidence, driving an increase in stock prices amid declining volatility. Market uncertainty does persist however, as concerns over rising inflation continue to plague economies worldwide.”

On the losing side were managed futures (down 2.15%, up 8.05% YTD) and global macro (down 1.59%, up 5.19% YTD). But nothing compared to the 7.3% decline by dedicated short-bias funds, which remain up 1.81% on the year.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of