Credit Suisse/Tremont Hedge Fund Index up 1.49% in April, based on partial returns
The hedge funds industry continued to perform relatively well amidst global economic turmoil in April and on the back of the European debt default crisis as early estimates indicate that the Credit Suisse/Tremont Hedge Fund Index (Broad Index) will finish up +1.49% in April (based on 74% of assets reporting).
Based on initial returns, hedge funds continued to post positive returns into the second quarter with eight out of ten sectors finishing April in positive territory. Event Driven appears to be the best performing sector for the month, returning an estimated 2.28% as managers benefited from idiosyncratic events and general upward movements in high yield and leveraged loan markets.
On the other hand, Relative Value strategies, such as Fixed Income and Convertible Arbitrage, were also on positive territories to finish last month up 1.93% and 1.70% respectively. While the majority of gains were due to a bullish equity and credit environment, many managers with long volatility exposures also benefited from a surge in volatility towards the end of the month.
Global Macro finished up an estimated 2.03% in April with manager performance largely driven by tactical equity and yield curve trades.
Long/Short Equity funds returned an estimated 0.16% last month. Performance was driven by stock specific gains. Conversely, Dedicated Short Bias managers struggled throughout the month, finishing down an estimated 3.41%.