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Hedge funds posted a historic performance surge in April, reversing the sharp March decline, with HFR’s main index posting its second best month in over a decade.
The HFRI Fund Weighted Composite Index jumped 4.8% for the month, led by Equity Hedge and Emerging Markets focused funds, its strongest gain since November 2020 and the second largest return since May 2009.
“Hedge funds delivered historic gains in April, fueled by easing geopolitical fears, rebounding tech and AI momentum, Fed leadership clarity, and optimism around a record IPO cycle,” said Ken Heinz, president of HFR.
“The sharp rebound marked a dramatic reversal from the risk-off sentiment in March, though managers remain tactically positioned amid expectations of renewed market disruptions and volatility.”
Equity Hedge funds, which invest long and short across specialised sub-strategies, led strategy performance in April, with the HFRI Equity Hedge (Total) Index vaulting 7.3% percent, the strongest month since November 2020 and the fourth best since index inception in 1990.
Sub-strategy equity performance was led by the HFRI EH: Technology Index, which soared 14.8%, and the HFRI EH: Fundamental Growth Index, which jumped 9.6%. Despite falling oil prices, the HFRI EH: Energy/Basic Materials Index added 4.7%.