Hedge funds have seen their best performance since 2006, returning an average of 3.2% last month, Bloomberg reports. Since the March lows, the markets have seen some heavy rallying and this might be one of the primary drivers of such a positive performance of the funds. Along with that is the decline in withdrawals as the level of investor confidence seems to be picking up.
The Eurekahedge Hedge Fund Index has returned 4.1 percent this year, according to a preliminary report by the research firm based on 42 percent of the more than 2000 funds it tracks globally. Last month’s gain was the biggest since the index rose 3.4 percent in January 2006.
Hedge funds benefited as global stocks surged 11 percent in April, as measured by the MSCI World Index of stocks in 23 developed nations. Fund managers are beating global benchmarks in 2009 after suffering the worst year on record in 2008, when Eurekahedge’s global index slid 12 percent, the most since the Singapore-based firm began tracking data in 2000.