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In April, global financial markets staged a historic recovery, rebounding from the sharp volatility-driven declines of the prior month. Risk-on sentiment strengthened on positive developments surrounding the Iran military conflict, alongside renewed optimism toward Technology and AI-related investment. Global equity markets posted strong gains, led by Emerging Markets and the Technology sector, while Oil declined. Interest rates were little changed for the month as lower, but still elevated, Oil prices tempered expectations for significant interest-rate cuts. The U.S. dollar weakened against most major currencies. Although Oil declined during the month, prices remained above pre-conflict levels, and the near-term outlook remained highly uncertain due to ongoing supply disruptions.

Hedge funds posted historic gains, with the HFRX Equity Hedge Index having its largest gain since February of 2000, and the HFRX Global Hedge Fund Index gaining +2.98%, its highest gain since December of 2000.

HFRX Equity Hedge Index gained +5.43% for the month led by gains in fundamental growth, value, and market neutral strategies. The HFRX Fundamental Growth Index gained +8.74% in April from gains concentrated in small-cap US and European equities. The HFRX Fundamental Value Index gained +4.16% from gains seen in large-cap US & European equities. The HFRX Equity Market Neutral Index gained +0.12% from gains in mean reverting, factor-based strategies.

HFRX Macro/CTA Index gained +2.83% in April from gains in systematic trend-following managers. The HFRX Macro Systematic/CTA Index gained +3.05% as the U.S. dollar weakened against major currencies. Commodities posted mixed performance with cotton leading gains and oil leading declines.

HFRX Event Driven Index gained +1.98% for the month from gains in special situations managers and merger arbitrage strategies. The HFRX Special Situations Index gained +2.02% from gains in exposure to global, catalyst-driven fundamental value equities. The HFRX Merger Arbitrage Index gained +1.43% as M&A deals continued through April and global equities posted strong gains.

HFRX Relative Value Arbitrage Index gained +1.28% in April from gains in convertible arbitrage strategies and multi-strategy managers. The HFRX Convertible Arbitrage Index gained +3.73% as volatility fell sharply in April. The HFRX RV: Multi-Strategy Index gained +1.05% as interest rates were little changed in April.

Comments reference performance figures as of April 30, 2026