Hedge Funds Outperformed Global Equities In April

Hedge funds outperformed global equity markets in April. According to Eurekahedge, the company’s Hedge Fund Index returned 1.12 percent in April, while the MSCI World Index finished the month up only 0.67 percent.

“Emerging market managers continued to perform well during the month supported by resilient oil and commodity prices which are helping to inject some investor optimism,” the report read.

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So far this year, Latin American mandated hedge funds are up 9.87 percent, their strongest year-to-date performance in a decade.

Distressed debt hedge funds also generated a strong 1.83 percent return during the month as commodity prices showed some resilience.

Japan mandated funds continued their poor performance, falling 1.53 percent in April. They are now down 4.31 percent year-to-date.

Greater China hedge funds lost 0.34 during the month, while India-focused funds gained 1.89 percent. So far in 2016, 63 percent of Asian managers are in the red compared to just 16 percent at the same time last year.

The Eurekahedge Hedge Fund Index is up 0.62 percent so far in 2016. The MSCI World Index is down 1.20 percent, but the SPDR S&P 500 ETF Trust SPY is up 1.62 percent. The ProShares Trust HDG hedge fund replication ETF is down 1.03 percent year-to-date.

Disclosure: The author holds no position in the stocks mentioned.