Hedge Funds Bounce Back In April
Due to strong global equity markets, long/short equity fund strategies performed the best during April.
May 9, 2008
Returns were higher in April for hedge funds than March, with the Greenwich Global Hedge Fund index returning 1.68%, rebounding from a 2.05% loss in March. The index has posted a 1.40% loss year to date, but it outperformed the S&P 500, MSCI World Equity and FTSE 100 indices.
Margaret Gilbert, managing director at Greenwich Alternative Investments, said, “Rebounding global credit and equity markets are evident in the returns of hedge fund managers this month. Seven of the Greenwich sub-strategy index groups now exhibit positive year-to-date performance.”
Due to strong global equity markets, long/short equity fund strategies performed the best during April, posting returns of 2.69%. Opportunistic funds had the highest gains within the group, while short selling strategies suffered the greatest losses.
Directional trading managers had been the best performing strategy thus far this year, but in April posted a 0.14% loss. Futures managers lost 1.11% for the month.
Subsectors of the market neutral group all posted gains on the month, with fixed income arbitrage and distressed securities managers the most successful, with 2.04% and 1.50%, respectively.
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