Hedge funds are on course to deliver their strongest monthly performance in more than a decade, buoyed by a sharp rebound in markets following a turbulent March and a shift in geopolitical sentiment, according to a report by Bloomberg.
March proved particularly challenging for macro-focused strategies, as escalating tensions between the US and Iran disrupted energy markets, drove inflation expectations higher, and triggered widespread losses across portfolios.
However, the tone has shifted meaningfully in April, with many firms recovering losses incurred during the previous month’s volatility. A temporary ceasefire between the two countries has improved investor sentiment, sparking a rally across asset classes and providing a more supportive backdrop for hedge fund strategies.
Several leading firms have already posted solid gains in the opening weeks of the month. Point72 Asset Management is understood to have risen by around 2.4% in early April, taking its year-to-date return above 6%. Millennium Management has delivered a similar monthly gain, bringing its performance for the year back into positive territory.
Bobby Jain’s recently launched Jain Global has also rebounded strongly, generating roughly 2.4% in the first part of April and recovering most of its earlier drawdown. Elsewhere, Verition Fund Management has reported comparable gains, supported by positive contributions across multiple trading strategies.
The recovery follows a difficult March in which some high-profile funds suffered steep declines. Macro-oriented managers were particularly affected, with certain firms posting double-digit losses amid sharp moves in commodities, rates, and currencies. In some cases, the drawdowns marked the worst monthly performance in years.
April’s improvement has been driven by a combination of factors. A decline in the US dollar, coupled with a rally in developed and emerging market rates, has created favourable conditions for macro trades. At the same time, equity markets have rebounded strongly, with several indices recovering wartime losses and, in some cases, reaching new highs.
