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Laxman Pai, Opalesque Asia: Hedge funds recouped some of the losses they suffered amidst pandemic-induced market chaos, said Eurekahedge.
The Eurekahedge Hedge Fund Index was up 3.73% in April - recording its strongest monthly performance in recent years, supported by the strong performance of the underlying global equity market as represented by the MSCI ACWI IMI (Local), which gained 10.47% over the month.
Hedge fund managers reduced their year-to-date losses to 4.64%, the report said.
Market optimism over the potential easing of lockdown measures following the slowdown of COVID-19 spread in the US and Europe acted as a tailwind for the performance of risk assets during the month. The MSCI ACWI IMI (Local) rallied 10.47% in April, but still down 13.21% as of April 2020 year-to-date.
According to the report, global equities enjoyed a strong rally throughout the month on the back of market optimism over the development of potential vaccines and the reopening of the economy.
In the US, the implemented lockdown and social distancing measures to curb the COVID-19 outbreak resulted in the loss of more than 22 million jobs in April, pushing the unemployment rate to 14.7% - a level not seen since the Great Depression.
However, US equity benchmarks recorded their strongest performance since 1987, with the S&P 500 and tech-heavy NASDAQ gaining 12.68% and 15.45% during the month respectively.
In the same vein, European equities posted strong performance as ...................... To view our full article Click here
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