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

Q&A: Quad Advisors’ Borish Is Looking For Real Traders, Not Index Huggers

Aug 20 2014 | 1:43pm ET

Peter Borish, who served as founding partner and director of research at Tudor Investment...

Lifestyle

Viking Manager In Rent Dispute

Aug 11 2014 | 4:14am ET

A hedge fund manager is demanding most of his money back from his former landlord...

Guest Contributor

Majority Of Inflows Go To Brand Name Hedge Funds

Aug 12 2014 | 9:00am ET

Since the market correction of 2008, a vast majority of hedge fund net asset flows...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note