Hedge funds bounced back in April after a two-month performance decline, led by fixed income-based relative value arbitrage and equity hedge strategies.
Fixed income-based relative value arbitrage was driven by the yield on US ten-year bonds which rose to the highest level in over four years.
The Hedge Funds Research Index (HFRI) extended year-to-date gains over equity market index declines, while the HFRI Fund Weighted Composite Index advanced 0.38 % for the month.
Equity hedge strategies topped most equity market indices for the month and year-to-date with strong contributions from energy and healthcare exposures.
Event-driven funds also advanced in April as expectations for strong corporate earnings fuelled an active M&A environment.
Kenneth J. Heinz, president of HFR, said: “The industry continues the process of evolving transitional politics and economics creating long and short opportunities across a wide continuum of specialised exposures and industries.”
He added: “This powerful process is likely to continue to drive performance through mid-2018.”
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