The Hennessee Hedge Fund Index rose 1.58% in April, well short of major US stock indexes. For the year, the index is up 1.44%.
Recovering stock markets were bad news for hedge funds with a short biased strategy, which suffered an 8.29% drop in the month. Those same funds rose 9.62% in February and 4.64% in March at a time when US stock markets were struggling. Year-to-date, however, the category is up just 0.17%.
On the other hand, healthcare and biotech funds rose 4.67%, topping the hedge fund return category for the month. However, the category is still down 7.7% for the year following three consecutive months of losses.
The year’s best performing strategy is convertible arbitrage that is up 7.88% year-to-date, and rose 2.28% in April, according to Reuters.