05/22/2006
Funds build on their first-quarter rebound
Hedge funds continued their rebound in April, with the Credit-Suisse/Tremont Hedge Fund Index rising 2.22 percent, an improvement over the 1.82 increase the index registered in March.
Positive returns in equity markets fueled the April increase. Strong emerging markets stock performance—up 3.82 percent in April, compared with the 1.37 percent increase in March—drove the index higher. Most notably, the continued influx of corporate capital, the Bank of China’s recent decision to raise interest rates and exposure to commodities and energy buoyed this sector.
Managed futures hedge funds and global macro hedge funds also fared well, generating returns of 2.92 and 2.86 percent, respectively.
Oliver Schupp, president of the Credit Suisse/Tremont Hedge Fund Index, said these strategies benefited from the dollar’s slide against the euro and yen.