11 May 2010
Hedge funds significantly outperformed global markets in April, posting positive returns across all regions and strategies. The Eurekahedge Hedge Fund Index advanced 1.23%1 as managers skilfully manoeuvred through the volatility. Most market indices ended the month on negative ground, with the MSCI World Index down 0.16% in April.
North American managers were also up significantly, gaining 1.73% on average during the month and beating the S&P 500 by nearly 0.2%. Positive corporate earnings helped the US market close April on a net gain; however, the month witnessed considerable volatility due to a spike in risk-aversion mid-month. Asia ex-Japan and European managers also closed the month with gains of 0.9% and 0.8%, respectively, while major markets in both regions registered losses. The FTSE was down 2.2%, the DAX and CAC lost 0.3% and 3.95%, respectively, while the Shanghai Composite declined by 7.69% during the month.
All strategies delivered positive returns for April, with distressed debt managers once again standing out with the strongest performance. The Eurekahedge Distressed Debt Hedge Fund Index rose 2.20% in April, making it the 13th consecutive month of positive returns, with the index gaining 50.51% since March 2009.
Relative value funds were up significantly, gaining 2.12% in April, while arbitrage and fixed income managers also delivered solid returns of 1.30% and 1.21%, respectively. The bond sector saw significant movement amid a rise in risk-aversion despite strong corporate earnings reports. Long exposures to safe haven assets such as US Treasuries were profitable as concerns over the eurozone debt crisis continued. Long/short equity managers and event driven managers were also up in April as the managers benefited from positive data from the corporate sector.
- Hedge funds outperformed global markets by 1.4% on average.
- Start-up activity geared up with nearly 120 fund launches in the first quarter.
- Japanese hedge funds delivered their best April year-to-date returns since 2004.
- Arbitrage hedge funds witnessed 17 months of consecutive positive returns, gaining 29.4% over this period
North American managers were also up significantly, gaining 1.73% on average during the month and beating the S&P 500 by nearly 0.2%. Positive corporate earnings helped the US market close April on a net gain; however, the month witnessed considerable volatility due to a spike in risk-aversion mid-month. Asia ex-Japan and European managers also closed the month with gains of 0.9% and 0.8%, respectively, while major markets in both regions registered losses. The FTSE was down 2.2%, the DAX and CAC lost 0.3% and 3.95%, respectively, while the Shanghai Composite declined by 7.69% during the month.
All strategies delivered positive returns for April, with distressed debt managers once again standing out with the strongest performance. The Eurekahedge Distressed Debt Hedge Fund Index rose 2.20% in April, making it the 13th consecutive month of positive returns, with the index gaining 50.51% since March 2009.
Relative value funds were up significantly, gaining 2.12% in April, while arbitrage and fixed income managers also delivered solid returns of 1.30% and 1.21%, respectively. The bond sector saw significant movement amid a rise in risk-aversion despite strong corporate earnings reports. Long exposures to safe haven assets such as US Treasuries were profitable as concerns over the eurozone debt crisis continued. Long/short equity managers and event driven managers were also up in April as the managers benefited from positive data from the corporate sector.
