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HFRI reaches historic gain in April

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Hedge funds posted a historic performance surge in April, reversing a sharp March decline, with the HFRI generating its strongest gain since November 2020 and the second largest return since May 2009, according to Ken Heinz, HFR President.  

The HFRI Fund Weighted Composite Index (FWC) jumped +4.8 per cent for the month, led by Equity Hedge and Emerging Markets focused funds, as reported today by HFR, the established global leader in the indexation, analysis and research of the global hedge fund industry.

“Hedge funds delivered historic gains in April, fuelled by easing geopolitical fears, rebounding tech and AI momentum, Fed leadership clarity, and optimism around a record IPO cycle. The sharp rebound marked a dramatic reversal from the risk-off sentiment in March, though managers remain tactically positioned amid expectations of renewed market disruptions and volatility,” says Heinz.

Equity Hedge (EH) funds, which invest long and short across specialised sub-strategies, led strategy performance in April, with the HFRI Equity Hedge (Total) Index vaulting +7.3 per cent, the strongest month since November 2020 and the fourth best since index inception (Jan 1990). 

EH sub-strategy performance was led by the HFRI EH: Technology Index, which soared +14.8 per cent, and the HFRI EH: Fundamental Growth Index, which jumped +9.6 per cent. Despite falling oil prices, the HFRI EH: Energy/Basic Materials Index added +4.7 per cent for the month, while the HFRI Emerging Markets Index surged +5.7 per cent, the highest gain since April 2020.

Event-Driven (ED) strategies also surged in April, as expectations for strong M&A and IPO environments in 2026 drove performance. The HFRI Event-Driven (Total) Index jumped +5.2 per cent for the month, the 2nd strongest gain in the index’s history, trailing only November 2020 (+7.0 per cent). ED sub-strategy performance in April was driven by the HFRI ED: Special Situations Index and HFRI ED: Activist Index, which jumped +9.0 and +8.4 per cent, respectively. Complementing these gains, the HFRI ED: Multi-Strategy Index advanced +4.6 per cent, while the HFRI ED: Distressed/Restructuring Index added +3.3 per cent. 

Navigating extreme volatility and sharp reversals in oil prices, the HFRI Macro (Total) Index gained +1.8 per cent in April, with Macro sub-strategy performance led by the HFRI Macro: Active Trading Index, which surged +3.5 per cent and the HFRI Macro: Systematic Diversified/CTA Index, which added +2.3 per cent for the month. The HFR Cryptocurrency Index gained +4.2 per cent in April while the HFRI Multi-Manager/Pod Shop Index added +2.8 per cent.

Fixed income-based, interest rate-sensitive strategies also advanced in April, with increased clarity on leadership at the US Federal Reserve and steadying of interest rates, with the HFRI Relative Value (Total) Index adding +1.8 per cent for the month. RVA sub-strategy performance was led by the HFRI RV Multi-Strategy Index, which gained +2.9 per cent and the HFRI RV: FI-Convertible Arbitrage Index, which added +2.8 per cent in March. 

HFR launches interval fund indices

HFR is pleased to announce the launch of Interval Fund Indices, which track total performance returns of equal- and asset-weighted basket of interval funds on a daily basis. The HFR Interval Funds Asset Weighted Index advanced +3.4 per cent in April and has gained +2.4 per cent YTD through May 5, 2026. 

Liquid Alternative UCITS strategies also gained in April, with the HFRX Market Directional Index surging +8.2 per cent, while the HFRX Global Index jumped +3.0 per cent. HFRX main strategy performance was led by the HFRX Equity Hedge Index, which advanced +5.4 per cent in April with strong contributions from the HFRX EH: Fundamental Growth Index, which surged +8.7 per cent for the month.

Hedge fund performance dispersion expanded again in April, as the top decile of the HFRI FWC constituents advanced by an average of +18.4 per cent, while the bottom decile of constituents fell by an average of -4.1 per cent, representing a top/bottom dispersion of 22.5 per cent for the month. By comparison, the top/bottom performance dispersion in March was 19.1 per cent. For the trailing 12 months ending April 2026, the top decile of FWC constituents gained +90.6 per cent, while the bottom decile declined -6.6 per cent, representing a top/bottom dispersion of 97.2 per cent. Approximately 85 per cent of hedge funds produced positive performance in April.

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