Hedge funds gained 1.7% in April according to final performance numbers for the Credit Suisse/Tremont Hedge Fund Index.

The broad index gained 1.68% in April, bringing year-to-date returns to 2.55%, noted Oliver Schupp, president of Credit Suisse Index Co., Inc. “We’re seeing risk appetite return to markets along with increased investor confidence, which benefited most hedge fund sectors last month,” he said.

Looking at specific strategies, Schupp noted that convertible arbitrage strategies had another strong month, gaining 4.52% in April, and that they are currently up 12.58% year to date.

“Nonetheless, while economic data does appear to be improving, market conditions remain tenuous,” Schupp cautioned. “Most hedge funds continue to maintain their defensive positioning, and we expect to see this trend continue until fund managers feel that market fundamentals have improved.”

IE