Emerging markets lead hedge fund gains in April

Eurekahedge Greater China Hedge Fund Index is up 15.36%, as CSI 300 Index soared 17.85% during the month.

May 13, 2015 02:05 IST India Infoline News Service

April turned out to be one more favourable month for the Hedge funds, as they registered their fourth consecutive month of gains since the start of 2015. The Eurekahedge Hedge Fund Index was up by 0.52% while the MSCI World Index gained 1.25% during the month.

Eastern Europe and Russia hedge funds did better than the others with the Eurekahedge Eastern Europe & Russia Hedge Fund Index up 9.09%. As the Russian rouble has gained in strength and the oil prices have increased, the Russian equity markets look in better shape now.

Emerging markets however took the cake, logging in great performance. Eurekahedge Greater China Hedge Fund Index is up 15.36%, as CSI 300 Index soared 17.85% during the month. With the yen weakening, Japanese equity markets seems well cushioned. Japan dedicated hedge funds also posted strong gains, up 1.92%. Eurekahedge India Hedge Fund Index however tumbled 3.29%.

North American managers posted the weakest returns, up 0.25% as the strengthening US dollar took a bite out of US corporate earnings. Meanwhile Latin American managers gained 1.82%, supported by the gains in underlying Brazilian equity markets as the IBOVESPA climbed 8.95% during the month.

Hedge funds recorded their third consecutive month of positive asset flows as investor allocations reached US$30 billion since the start of February. Long/short equity strategies lead with returns of 1.85%, bringing April year-to-date returns up to 5.04%, the highest among all strategic mandates. 

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