Hedge funds were up 1.73% in April making it ten consecutive months of positive returns for the industry. Managers handled the mid-month volatility skillfully to post strong returns for the month. Trend-following strategies were the most successful as the markets' movements were positive at the start of the month and ended with a sharp upturn. The MSCI AC World Index was up 1.84%1 during the month.

Highlights for April:
* Hedge funds up for the 10th consecutive month, gaining 1.73% in April and 2.99% YTD

* Early reporting funds indicate strong inflows for April reaching almost $10bn.

* Net flows in the first four months now exceed total net flows for whole of 2010 ($73.2bn April 2011 YTD vs. $66bn in 2010).

* CTA/managed futures funds gain 3.73% in April, AUM reaches new record high of $213.6 billion.

* Large hedge funds outperforming smaller hedge funds in 2011.

* The 2011 Asian Hedge Fund Awards programme is now live!

Most regions delivered positive performance during the month, with the exception of Japan hedge funds. Asia ex-Japan managers led the way with returns of 1.63%, an outperformance to underlying markets. Major market indices such as the SSE Composite, ASX and the Sensex finished the month in negative territory; -0.57%, -0.30% and -1.59% respectively. Gains were posted through SEA exposure and strong corporate activity in the region — the MSCI South East Asia Index was up 4.27% in April.

North American and European hedge funds also witnessed healthy returns, gaining 1.50% and 0.97% in April. The month started off with positive movements in the markets, however the trend reversed mid-month after the announcement of S&P’s revised outlook on US sovereign debt.

Markets rebounded on the back of strong corporate earnings announcements and expectations of continued low interest rate in the US as well as the successful placement of European government bonds — the S&P500 was up 2.61% in April while the MSCI Europe Index gained 2.64%.

All strategies delivered positive returns in April, led by CTA/managed futures funds — up 3.73% during the month. Trend following strategies were successful during the month, generating excellent returns for several managers. Crude oil prices touched a 31 month high and gained 7% in April, while gold and silver prices reached new record highs during the month. Hedge funds operating with a macro mandate also registered strong gains of 1.68% during the month as managers were able to capture most of the gains on offer across the different asset classes. Distressed debt funds continued their winning streak into yet another month bringing their year-to-date April returns to 5.44% — the best amongst all strategic mandates.