The Preqin All-Strategies Hedge Fund benchmark returned 0.76 per cent in April, its sixth consecutive month of gains, taking 2017 YTD and 12-month performance to 3.99 per cent and 10.67 per cent respectively.
In contrast to the wider benchmark, macro strategies have posted two consecutive month of losses, having returned -0.27 per cent in April and -0.09 per cent in March. However, all other leading strategies have been above water in each month of the year so far. Equity and event driven strategies have outperformed the industry benchmark in 2017 posting robust returns in April of 1.03 per cent and 0.87 per cent respectively. Multi-strategy funds (+0.52 per cent) and credit strategies (+0.21 per cent) also enjoyed gains in April and, along with event driven strategies, have now posted 14 successive months of positive returns.
CTAs continued their recent up-and-down performance with gains of 0.49 per cent in April, the fifth month in a row without consecutive positive or negative monthly returns.
After losses in 2016, funds of hedge funds have recovered in 2017, posting gains of 0.59 per cent in April to take year-to-date performance to 1.82 per cent.
Hedge funds larger than USD1 billion returned 0.86 per cent in April; 2017 YTD performance (+4.14 per cent) exceeds all other size classifications*.
Emerging markets have made gains of 6.66 per cent in 2017 YTD outstripping developed markets (+2.56 per cent).
Activist hedge funds have added positive returns in every month bar one (October) over the past year; gains of 1.17 per cent in April take Activists 12-month performance to 15.96 per cent.
Discretionary hedge funds returned 1.06 per cent, taking 12-month performance to 12.43 per cent while, in comparison, systematic funds posted smaller gains of 0.75 per cent in April and 7.09 per cent over 12 months.
Alternative mutual funds posted returns of 0.43 per cent in April after losses in March (-0.19 per cent), while UCITS returned 0.57.
Amy Bensted (pictured), Head of Hedge Fund Products at Preqin, says: “The run of strong returns over the past year has continued into April with the hedge fund industry adding another month of gains. Although the 12-month return of 10.67 per cent exceeds the return expectations of most investors tracked by Preqin, fund managers are mindful of the fact that a significant number of investors are still concerned by the long- term value of the asset class, and are thus keen to ensure that this level of performance continues.”
