Hedge funds posted positive returns in April as most markets trended upwards during the month, shows a study by Eurekahedge, an investment data provider.
The Eurekahedge Hedge Fund Index was up 1.09% during the month, while the MSCI World Index gained 2.02% for the same period.
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The month started with some profit taking from the equity markets amid some disappointing global economic data leading to the S&P 500 dipping below the 1,550 mark by mid-month.
However, the markets brushed off initial disappointment amid the earnings season, some positive economic data from the US and the installation of an Italian government in Europe.
Most major hedge fund investment regions delivered positive returns for the month, with Japanese managers posting the strongest returns for yet another month.
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The Eurekahedge Japan Hedge Fund Index was up 4.22% in April, bringing its year-to-date return to 15.87% and extending their winning run to eight consecutive months – making it the longest winning streak on record for Japanese funds.
Asia ex-Japan managers also delivered positive returns in April with gains of 2.37%, outperforming the underlying markets for the second consecutive month – the MSCI Asia ex-Japan Index3 was up 1.87% during the month.
Managers investing in India witnessed the strongest returns with an average gain of 6.60% in April. North American managers posted returns of 0.76% in April as the market witnessed some trend reversals during the month – the S&P 500 increased by 1.81% in April.