Hedge funds retreated 0.4% in April, dragging year-to-date returns further into the red at -0.6%. April was a challenging month for the financial markets as the combination of the escalating Russia-Ukraine war, lockdowns in China and the increasingly hawkish Federal Reserve spurred stagflation worries.
Key highlights from the report from HFM Hedge Fund Performance review below:
HFM’s Global Composite Index was down -0.4% in April and -0.6% year-to-date, while the HFM FoHF Composite Index declined -2.6% year-to-date. .
Billion-dollar club funds outperformed smaller funds for a fourth consecutive month, extending their lead over smaller funds in 2022 to 2.8%.
L/S equity and event-driven funds were the biggest drags on the month, down 2.8% and 3.0%, respectively. Conversely, managed futures and macro funds were up 3.2% and 1.3%, respectively, the only top-level strategies that posted positive returns in April.
North America was the poorest performing region in April but has nevertheless managed to outperform US stocks by a significant margin.
Fixed income/credit posted a negative return for the fourth time in 2022, the worst run among top-level strategies.
Arbitrage/RV funds had the narrowest dispersion over the past 12 months. Around 80% of funds returned between 9% and -5%.