Hedge funds gained an average of 1.26 per cent in April, the fourth consecutive month of positive returns, following a five-month string of aggregate declines closing out 2018, according to the latest eVestment April 2019 hedge fund performance data.

Year to date (YTD) 2019 industry average gains of 6.52 per cent lag a global balanced benchmark but represent the industry’s best first four months since 2006, when aggregate gains were 7.62 per cent.
 
Among primary strategies, Event Driven – Activist strategies were big winners in April and YTD 2019, returning an average of +2.79 per cent last month and +9.94 per cent so far this year. This is a noticeable turnaround from 2018, when Event Driven – Activist funds were deep in the red at -10.30 per cent.


Managed futures funds again produced big gains in April, returning an average of +2.03 per cent, bringing Q1 2019 returns to +4.66 per cent. The group still has a way to go to offset 2018 average losses of -6.06 per cent. The 10 largest funds in the space returned an average of +3.02 per cent in April and are +6.77 per cent YTD.


Long/Short Equity funds were another big winner in April, returning +1.79 per cent last month and +9.84 per cent YTD. As with Event Driven – Activist funds, Long/Short Equity funds are seeing a marked turnaround from their -7.03 per cent performance in 2018.


Russia-focused funds gained the most of any emerging markets segment in April, returning an average of +2.61 per cent, bringing YTD returns to 11.10 per cent.


China-focused funds underwhelmed in April with +0.74 per cent returns, but continue to be the industry’s best performing segment overall in 2019 with average YTD gains of 18.55 per cent.