Hedge funds returned 0.56 percent in April as equity markets such as the MSCI World Index gained 1.18 percent, data provider Eurekahedge reported in a flash update of its Hedge Fund Index results.
However, developed markets outperformed emerging markets, which suffered from negative returns in their local stock markets.
In Europe and North America, equity markets rebounded in April as concern over a potential trade war diminished.
Economic data for the first quarter of 2018 “was largely encouraging, albeit recovery was at a slower pace with indicators pointing towards global economic expansion,” Eurekahegde noted.
About 60 percent of the underlying constituent funds for the Eurekahedge Hedge Fund Index were in positive territory during the month, with nearly 4 percent reporting gains in excess of 5 percent.
European hedge funds were the best performers, up 1.14 percent, and distressed debt managers led the table across strategies, gaining 1.24 percent over the same period.
On a year-to-date basis, hedge funds were up 0.24 percent while underlying markets declined 1.08 percent.
Eastern European and Russian hedge fund managers returned 5.41 percent in 2018, the best performance, followed by Latin America and emerging markets focused funds with gains of 4.27 percent and 1.45 percent respectively.
The Eurekahedge Crypto-Currency Hedge Fund Index posted significant gains of 83.86 percent in April, but the index is still down 1.22 percent for the year. In comparison, bitcoin has lost over 33 percent in the same year-to-date period.