Opalesque Industry Update - Hedge funds lost 0.24% in April, according to the Barclay Hedge Fund Index compiled by BarclayHedge. The Index is up 1.14% in 2014.|
“Intra-month volatility in global equity markets proved troublesome for equity long/short funds as the MSCI World Index dropped three percent in the first half of the month, yet managed to end the month with a one percent gain,” says Sol Waksman, founder and president of BarclayHedge.
Twelve of Barclay’s 18 hedge fund indices lost ground in April. The Technology Index dropped 3.68%, Healthcare & Biotechnology fell 3.64%, European Equities lost 1.40%, Equity Long Bias was down 0.97%, and Equity Long/Short lost 0.84%.
“Healthcare and Technology were hit particularly hard as investors continued to rotate holdings out of growth and momentum sectors into defensive sectors,” says Waksman.
Six hedge fund strategies made gains in April. Fixed Income Arbitrage was up 0.73%, Equity Short Bias gained 0.53%, the Event Driven Index added 0.61%, and Convertible Arbitrage gained 0.52%.
“US interest rates continued to decline even as the Fed further reduced its monthly asset purchases,” says Waksman.
“As investors have continued to search for yield, the interest rate spread of high yield debt over US Treasuries has narrowed to near pre-crisis levels.”
The Barclay Fund of Funds Index lost 0.79% in April, and is down 0.13% year to date.
The Healthcare & Biotechnology Index is up 5.82% in 2014, Distressed Securities have gained 4.46%, the Event Driven Index is up 3.51%, Fixed Income Arbitrage has added 3.11%, and Convertible Arbitrage is up 2.74%.
The Technology Index has lost 4.16% in 2014, Equity Short Bias Index is down 4.28%, and Pacific Rim Equities have lost 2.69%.