New York (HedgeCo.net) – The economic recovery continued to gain momentum through April, allowing all Morningstar hedge fund categories to post positive numbers for the month, according to Mallory Horejs, alternative investment analyst for Morningstar. “Trend-following strategies in particular profited from the market’s momentum by taking advantage of surging commodities prices, strengthening credit markets, and a depreciating U.S. Dollar.”
Some highlights include:
- Hedge funds in Morningstar’s database netted $3.6 billion of inflows in March
- The Morningstar 1000 Hedge Fund Index increased 2.5% in April
- The currency-hedged Morningstar MSCI Hedge Fund Index rose 1.6%
- Stock market volatility dropped to its lowest level in nearly four years
- The Morningstar Global Non-Trend Hedge Fund Index advanced 2.8%
- Gold and silver crude oil drove returns of funds in Morningstar’s Global Trend Hedge Fund Index which increased 5.9% for the month.
In a reversal of recent outflow trends, hedge funds of funds in Morningstar’s database experienced inflows of $1.2 billion in March. The Morningstar Hedge Fund of Funds Index nearly matched the performance of the single-manager hedge fund index in the month of April, increasing 2.4%.
However, funds of hedge funds did outpace the Morningstar Multi-Strategy Hedge Fund Index, which increased 2.0% in April. Multistrategy funds in Morningstar’s database leaked $160 million in March, more than any other category.
Editing by Alex Akesson
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