Hedge Funds Extend Positive Run in April with 1.21% Gain According to Backstop BarclayHedge

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Solid U.S. economic news and steady Chinese growth boost investor confidence

Hedge funds extended their run of positive returns to four straight months in April, returning 1.21% for the month, according to the Barclay Hedge Fund Index compiled by BarclayHedge, a division of Backstop Solutions.

By comparison, the S&P 500 Total Return Index rose 2.85% in April. For the-year-to date through the end of April hedge funds returned 6.86% while the S&P was up 19.32%.

“Several factors buoyed investor sentiment in April, including U.S. first quarter growth exceeding expectations and strong U.S. consumer spending and March jobs reports,” said Sol Waksman, president of BarclayHedge. “Hopeful signs in the U.S.-China trade dispute as President Trump directed negotiators to reach a solution bolstered equity markets, while reports that Chinese economic growth held steady in the first quarter gave a further boost to investor confidence."

The Technology Index set the pace in April with a 3.70% return, with the Emerging Markets Eastern European Equities Index close behind at 3.54%. The Equity Long Bias Index returned 3.15% for the month while the Emerging Markets Eastern Europe Index posted a 3.11% return.

“Healthy first quarter economic growth in Poland and solid consumer spending and employment gains in Romania were among the factors adding strength to Eastern European funds,” added Waksman.

Other fund sectors in positive territory in April included the Emerging Markets Other Index, up 1.73%, the Emerging Markets MENA index with a 1.68% return and the European Equities Index, up 1.59%.

April saw only a handful of hedge fund sectors in the red. They included the Healthcare & Biotechnology Index, down 2.63%, the Equity Market Neutral Index, off 0.72%, and the Emerging Markets Asia Index, down 0.09%.

For the year-to-date through April, the Technology Index led the pack with a 12.68% return. Also in double digits for the year-to-date was the Healthcare & Biotechnology Index, returning 11.51% through April. The Equity Long Bias Index reflected the year’s strong equity market performance with an 11.84% year-to-date return, while the Emerging Markets Eastern European Equities Index returned 10.98% and the Emerging Markets Eastern Europe Index returned 10.07%.

For a complete table of BarclayHedge Hedge Fund and Sub-Index results for April, as well as historical returns, click here.    

About Backstop Solutions

Backstop’s mission is to help the institutional investment industry use time to its fullest potential. We develop technology to simplify and streamline otherwise time-consuming tasks and processes, enabling our clients to quickly and easily access, share, and manage the knowledge that’s critical to their day-to-day business success. Backstop provides its industry-leading cloud-based productivity suite to investment consultants, pensions, funds of funds, family offices, endowments, foundations, private equity, hedge funds, and real estate investment firms.

BarclayHedge, a division of Backstop, currently maintains data on more than 6,900 hedge funds, funds of funds, and CTAs. The BarclayHedge Indices are utilized by institutional investors, brokerage firms, and private banks worldwide as performance benchmarks for the hedge fund and managed futures industries.

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