The Hennessee Arbitrage/Event Driven Index increased +0.11 % in April (+2.26% YTD). The Barclays Aggregate Bond Index gained +0.84% (+2.81% YTD) as interest rates were slightly lower for the month. High yield increased as the Merrill Lynch High Yield Master II Index increased +0.69% in April (+3.71% YTD). High yield spreads were slightly lower in April, losing 6 basis points to end the month 371 basis points over treasuries. The Hennessee Distressed Index was flat in April (+3.50% YTD). The Hennessee Merger Arbitrage Index gained +0.16% in April (+1.08% YTD). The Hennessee Convertible Arbitrage Index also performed well, gaining +0.68% for the month (+3.80% YTD).
Charles Gradante noted that, “Global markets continue to be choppy with Greece and Russia down -9.30% and -6.47%, respectively, during the month as Macro managers continue to take losses. Japan continued its downward slide losing -2.59% for the month.
Most macro managers have all but eliminated their bets on gold but still believe in its future as devaluation of the dollar is inevitable in their analysis.” reported Charles Gradante.
The Hennessee Global/Macro Index decreased -0.45% in April (-0.91% YTD). The Dow Jones UBS Commodity Index was slightly higher for April, gaining +2.43% (+9.58% YTD), while the MSCI ACWI Index gained +0.75% (+1.36% YTD) and the MSCI EAFE Index gained +1.09% (+1.10% YTD). The Hennessee International Index lost -1.56% in April (-2.63%). Large gains in New Zealand, Singapore, the UK, Norway, Spain and France far outpaced heavy losses in Japan, Israel, the Netherlands and Sweden. Emerging markets were relatively flat in April with noteworthy gains in Egypt, Brazil, Turkey, Peru, the Philippines, and Thailand. Greece and Russia both experienced severe losses of well over -5.0% for April, dragging down what would have been an otherwise relatively strong month. The MSCI Emerging Market Index rose +0.06% (-0.74% YTD), while hedge fund managers slightly outperformed the index, as the Hennessee Emerging Market Index gained +0.31% (+1.07% YTD).
The Hennessee Macro Index increased +0.26 for the month of April (-1.80% YTD). Fixed income managers were modestly positive in April as bond yields were slightly lower for the month with the 10-Year U.S. Treasury ending the month at 2.71%, down 1 basis point from 2.72% in March. Commodities were mixed for April, with gold gaining +0.50%, palladium jumping +4.33% and silver dropping -2.90%. The U.S. Dollar was relatively weak against most currencies, losing -0.66% versus the Euro, -0.07% versus the Australian Dollar, -1.07% versus the British Pound and -0.22% versus the Japanese Yen. Oil also dropped in April, with WTI losing -1.48% and European Brent Blend Crude slipping -0.53%. Natural gas also continued its slide, losing -6.92% for April.