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Dow Jones Hedge Fund Indexes sees most strategies bounce back in April

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Five of the six hedge fund strategies covered by Dow Jones Hedge Fund Indexes posted net-of-fees gains in April, although event-driven is still the only strategy tracked by Dow Jones that

Five of the six hedge fund strategies covered by Dow Jones Hedge Fund Indexes posted net-of-fees gains in April, although event-driven is still the only strategy tracked by Dow Jones that is in positive territory for the year to date.

Around one percentage point separated the top three performing strategies for April, with equity long/short leading the way with a gain of 3.54 per cent. Event-driven followed with a return of 2.60 per cent, while distressed securities was up 1.39 per cent.

Merger arbitrage and equity market neutral also achieved gains, albeit modest ones of 0.27 per cent and 0.08 per cent respectively. Convertible arbitrage was the only strategy to post a loss in April with a decline of 1.95 per cent.

Aided by its solid performance in April, event-driven is now the leading strategy so far this year, although its gain after four months is just 0.80 per cent. Merger arbitrage and equity market neutral are not far behind with small losses of 0.37 per cent and 0.43 per cent respectively.

Equity long/short moved out of last place thanks to its April surge, but is still down 2.89 per cent for the year. Distressed securities is down 4.17 per cent and convertible arbitrage continued to slide, extending its decline for the year to 6.63 per cent.

By contrast, the Dow Jones Wilshire 5000, a broad measure of the US equity market, returned 4.98 per cent (5.05 per cent on a full-cap basis) in April, but it remains down just over 5 per cent for the year on either measure.

The Dow Jones Corporate Bond Index gained 0.79 per cent in April and is up 1.68 per cent for the year, while the Dow Jones Wilshire Global Index was up 5.38 per cent for the month, but remains off 4.45 per cent in 2008.

The Dow Jones Hedge Fund Index figures for April are based on daily estimates net of fees. The final performance figures will be available towards the end of this month.

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