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HFM's Multi-strategy Composite Index currently leads the global composite YTD (7.5% to 7.4%) and on a three-year annualised basis (8.6% to 8.2%) but trails over 12 months (24.6% to 25.9%).

Despite robust recent performance, investors have favoured other strategies of late, with HFM data showing that multi-strategy managers saw outflows in April when the wider industry added more than $25bn.

Multi-strategy also saw $20.6bn of net outflows in 2020, suggesting that some investors have remained sceptical over its merits.

However, HFM research from the end of 2020 found that all investors planned to increase their allocations to multi-strategy in H1 2021, with all investor types planning notable net positive.

However, if aggregated data suggests investors are lukewarm to the strategy, generally, it is because some have had their interests drawn to larger funds: several brand-name multi-strategy firms have been aggressively adding headcount in recent months following periods of strong performance and inflows, according to HFM intel.

Net inflows and performance gains mark strong month: HFM's Fixed Income Composite Index gained 0.9% in April and 3.5% YTD, while net investor flows for the month were nearly $5bn, as credit hedge fund managers built on steady recent progress.

Inflation continued to be the dominant theme in fixed income markets during April, but the benchmark 10- year US Treasury yield steadied, having already risen sharply in Q1. Credit hedge fund managers attracted fresh capital from investors during April and are close to reversing the outflows they experienced during Q1.

Away from debates over short-term performance, investors have shown a growing interest in green bond funds. Figures from the Climate Bond Initiative think thank suggest 2021 may mark yet another record in green bond issuance.

With fixed income hedge fund managers' strong returns in Q1 translating into positive flows in March and April, their response to investor interest in green and ESG-compliant funds will likely prove key to maintaining a positive trajectory longer term.