Hedge funds outperformed underlying markets in April and were up 1.12%, while underlying markets as represented by the MSCI World Index ended the month up 0.67%, finds the Eurekahedge report.

Here are some additional findings.

  • In April, Latin American mandates contributed to strong gains for managers, up 4.17%. On a year-to-date basis, Latin American mandated hedge funds were up 9.87% — their best year-to-date returns over the past 10 years.
  • Distressed debt hedge funds posted the best returns during the month of 1.83%, as higher oil and commodity prices lent some support to the valuations of managers.
  • Japan mandated hedge funds were the worst performers during the month, down 1.53% and 4.31% year-to-date, as the Bank of Japan decided to hold policy steady for the moment.
  • Among developed market mandates, North American and European managers grew by 1.51% and 0.45% respectively, while Japanese managers lost 1.53%.
  • Emerging market managers posted their second consecutive month of gains, up 2.57% as underlying Eastern Europe & Russia and Latin America mandated hedge funds jumped 3.42% and 4.17%, respectively, in April.
  • The Eurekahedge Asia ex-Japan Hedge Funds Index was up 1.28% in April. Greater China hedge funds, a heavyweight of the index declined 0.34% during the month, while India focused managers were up 1.89%. On a year-to-date basis, 63% of Asian managers are in the red this year, compared with only 16% over the same period last year.