Final performance for the Credit Suisse/Tremont Hedge Fund Index was up 1.68 per cent in April, bringing year-to-date returns to 2.55 per cent.

Final performance for the Credit Suisse/Tremont Hedge Fund Index was up 1.68 per cent in April, bringing year-to-date returns to 2.55 per cent.

Oliver Schupp, president of Credit Suisse Index, says: 'We're seeing risk appetite return to markets along with increased investor confidence, which benefited most hedge fund sectors last month.'

Convertible arbitrage had another strong month, gaining 4.52 per cent in April, and is currently up 12.58 per cent year to date.

Other strong performers were emerging markets, which rose 5.17 per cent, long/short equity, which was up 2.54 per cent, and multi-strategy, up 2.24 per cent.

However, dedicated short bias fell -9.57 per cent and is down -8.51 per cent year-to-date. Managed futures slipped by -3.24 per cent.

Schupp adds: 'Nonetheless, while economic data does appear to be improving, market conditions remain tenuous. Most hedge funds continue to maintain their defensive positioning, and we expect to see this trend continue until fund managers feel that market fundamentals have improved.'

Performance for the Credit Suisse/Tremont Hedge Fund Index and its ten sub-strategies is calculated monthly.