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

Creating An Offshore Hedge Fund Dream Team: The Seven Key Players

Jun 26 2015 | 6:47am ET

If you want to set up an offshore hedge fund, like any great team, you’re only...

Lifestyle

Hedgies Set to Compete in Wall Street Decathlon

Jun 8 2015 | 12:37am ET

The Wall Street Decathlon — a 10-event physical challenge that will crown “Wall...

Guest Contributor

6 Essential Principles To Balance Your Investment Risk

Jun 26 2015 | 10:07am ET

In this article, financial expert Greg Silberman explores how to hedge a private...

 

Editor's Note