HFN Hedge Funds Gain 2% In April

by Carla Johnson, Investors Offshore.com

12 June 2007

As of May 21, with 2,971 individual hedge fund products reporting performance figures, the HFN Hedge Fund Aggregate Average was +2.0% in April while the S&P 500 Total Return is +4.2%. Through the first four months of 2007 the Aggregate is +4.5% and the S&P TR was +5.1%.

"Given the dominance of equities in April, it should be no surprise that directional equity related managers outperformed relative value during the month," HFN said in a press release.

The HFN Equity Hedge Aggregate Average was +2.2% in April and +5.5% YTD while the HFN Relative Value Aggregate Average was +1.5% and +4.5% YTD.

China focused funds are by far the best regional specialty in 2007. Funds investing in Chinese markets returned an average of +7.8% in April and are at an average of +16.9% YTD.

The HFN Latin America Average was again the best performing regional HFN benchmark in April. As the only HFN Average made up solely of funds investing in emerging markets, it should come as no surprise that the LatAm Average continues to perform well. Heavily weighted in Brazil focused funds, the HFN Latin America Average was +3.7% in April and +9.8% YTD, while Brazil’s BOVESPA was +6.9% in April and +12.9% YTD. Brazil only funds returned +4.6% in April and are +12.9% YTD.

A positive earnings related announcement from Merck mid-month helped the Healthcare sector be the best performing equity sector in April. Healthcare focused funds were the leading sector/strategy in April and the HFN Healthcare Sector Average increased +4.9% and is +5.1% YTD.

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