As more funds' results are reported for April, average returns measured by Australian Fund Monitor's index have increased to be outperforming the ASX200 by close to two per cent.

April seems more than a month away, and in market terms it is. The ASX200 is down over ten per cent in May month-to-date and is heading towards one of the worst months in recent history, with the potential to surpass the falls of late 2008 when the financial crisis was in full swing.

Long short managers and equity market neutral funds are likely to cushion the downside of the latest market turmoil, while the best performers in May are likely to be amongst the global macro and long volatility funds. Many of these have struggled over the past year while markets rallied, against their predictions that sovereign debt and structural issues were an accident waiting to happen.

Australian Fund Monitor's index is up by 0.48 per cent in May. Equity based funds and non-equity based funds have both risen by 0.48 per cent.

The ASX200 is down 1.40 per cent.