Markets Are Outperforming Hedge Fund Industry, EDHEC-Risk Says

According to EDHEC-Risk, the markets are continuing their upward trend--the S&P 500 index (+2.96% in April), for one, has been outperforming the hedge fund industry for months.
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According to EDHEC-Risk, the markets are continuing their upward trend–the S&P 500 index (+2.96% in April), for one, has been outperforming the hedge fund industry for months.

Similarly, EDHEC-Risk says, implicit volatility continued to wane (14.8%) in April and reached its lowest level in four years.

Convertible bonds were up 2.68% in April, while regular bonds were up 0.86%. The commodities market rose 4.57%, marking eight consecutive months above 2% and a cumulative profit of 52% over the period, according to the institute. The US dollar declined 3.39% in April.

Funds of funds rose 1.14%, scoring remarkably well, EDHEC-Risk says.

In such conditions, all hedge-fund strategies were profitable; although not as much so as the stock market, the EDHEC-Risk said in a statement. Despite the good results of convertible bonds, the Convertible Arbitrage strategy (+0.12%) struggled for profitability, as its performances slackened over the past four months. The continuing fall of the dollar and rise of the commodities market benefited the CTA Global strategy (+3.82%), whose trend is frenetic but positive.

(CG)

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