Hedge Funds gained 0.49 per cent in April according to the Barclay Hedge Fund Index compiled by BarclayHedge, versus a 0.38 per cent gain in the S&P 500 Total Return Index. Year to date, the Barclay Index remains up 0.30 per cent, while the S&P has lost 0.38 per cent.
“Increasing tension in the middle east and White House displeasure with the Iran nuclear deal provided a lift to share prices of energy companies,” says Sol Waksman (pictured), founder and president of BarclayHedge.
Overall, 13 of Barclay’s 17 hedge fund indices had gains in April. The Technology Index jumped 2.96 per cent, European Equities were up 2.37 per cent, Distressed Securities gained 1.17 per cent, and the Equity Long/Short Index added 0.86 per cent.
The Emerging Markets Index fell 0.94 per cent in April, Merger Arbitrage lost 0.12 per cent, and the Equity Market Neutral Index slipped 0.05 per cent.
“A plummeting peso in Argentina, a strengthening US dollar, and a four-year high for US 10-year Treasury yields put downward pressure on emerging markets in April,” says Waksman.
At the end of April, 10 hedge fund indices have gains for the year, and seven have losses. The Technology Index is up 5.93 per cent, Healthcare & Biotechnology has gained 3.20 per cent, Distressed Securities are up 2.44 per cent, and European Equities have gained 2.17 per cent.
Pacific Rim Equities have lost 2.54 per cent year to date, Global Macro is down 1.46 per cent, the Event Driven Index has lost 1.20 per cent, and Merger Arbitrage is down 1.08 per cent.
The Barclay Fund of Funds Index gained 0.34 per cent in April, and has a year-to-date gain of 0.45 per cent.