Hedge funds jumped 5.05 per cent in April, according to the Barclay Hedge Fund Index compiled by BarclayHedge.

Hedge funds jumped 5.05 per cent in April, according to the Barclay Hedge Fund Index compiled by BarclayHedge.

'This is the largest one-month gain for hedge funds since February 2000, when the Barclay Hedge Fund Index soared 6.76 per cent,' says Sol Waksman, founder and president of BarclayHedge.

'The resurgence of global equity markets in April has given a big lift to most hedge fund strategies. All of the MSCI Barra equity indexes in developed markets and emerging markets posted gains last month, many of them in double digits.'

In April, 16 of Barclay's 18 hedge fund indices gained ground. The Barclay Emerging Markets Index shot up 9.65 per cent, the Event Driven Index gained 8.00 per cent, Equity Long Bias rose 7.36 per cent, the Healthcare & Biotechnology Index was up 6.14 per cent, and Technology gained 5.57 per cent.

'Risk appetites among investors seem to have increased in April,' says Waksman, 'and emerging markets, which had been shunned in January and February, appear to be a major beneficiary.'

The Equity Short Bias Index plunged 7.68 per cent in April and Equity Market Neutral slipped 0.92 per cent.

'Equity Short Bias had its biggest one-month drop since April of 2001, when the Index lost 8.55 percent,' says Waksman. 'Hedge funds trading the short side had record gains in 2008, when they were up 40.91 percent for the year. Although they've given back 10.64 per cent in the past two months, Equity Short Bias is still leading all hedge fund strategies with a 9.88 per cent gain over the past 12 months.'

The Barclay Fund of Funds Index gained 0.63 per cent in April.