Hedge Fund Data
Hedge fund industry performance review – April 2025
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In summary
Hedge fund performance was positive in April. Hedge fund strategy performance was mixed. The average asset-weighted hedge fund net return across all strategies was 0.21%. The strongest performing strategy was multi-strategy, and the weakest was quant, which notably underperformed due to the weakness in the CTA sub-strategy. Hedge fund performance dispersion decreased compared to March.
About Aurum
Aurum is an investment management firm focused on selecting hedge funds and managing fund of hedge fund portfolios for some of the world’s most sophisticated investors. Aurum also offers a range of single manager feeder funds.
Aurum’s portfolios are designed to grow and protect clients’ capital, while providing consistent uncorrelated returns. With 30 years of hedge fund investment experience, Aurum’s objective is to lower the barriers to entry enabling investors to access the world’s best hedge funds.
Aurum conducts extensive research and analysis on hedge funds and hedge fund industry trends. This research paper is designed to provide data and insights with the objective of helping investors to better understand hedge funds and their benefits.
| HEDGE FUNDS | ||
|---|---|---|
| Hedge fund composite |  | Hedge fund performance was positive in April. Hedge fund strategy performance was mixed. The average asset-weighted hedge fund net return across all strategies was 0.21%. The strongest performing strategy was multi-strategy, and the weakest was quant, which notably underperformed due to the weakness in the CTA sub-strategy. Hedge fund performance dispersion decreased compared to March. |
| Long-biased |  | Long biased funds monitored by Aurum’s Hedge Fund Data Engine returned an average of 0.58%, the second weakest performing master strategy group during the month. Sub-strategy performance was generally negative; commodities-focused long biased funds were notably weak at -2.85%. |
| Quant | | Quant funds monitored by Aurum’s Hedge Fund Data Engine returned -1.01% on average in April. Sub-strategy returns were diverse, with quant multi-strategy funds performing strongest at 2.89%, while CTA strategies continued to struggle, the weakest at -4.14%. |
| Equity long/short | | Equity long/short funds returned an average of 0.63% in April. European L/S funds were the strongest sub-strategy, up 1.30%. Sub-strategy returns were generally positive, with the exception of Asia Pacific L/S, -0.18%, and US-focused funds, -0.12%. |
| Macro | | Macro funds monitored by Aurum’s Hedge Fund Data Engine generated an average net return of 0.72% in April. Sub-strategy returns were generally positive; however commodities macro was the only sub-strategy with negative returns, down 0.77%. |
| Multi-strategy | | Multi-strategy funds monitored by Aurum’s Hedge Fund Data Engine returned an average of 1.08% in April. The largest multi-strategy funds (AUM greater than $5bn) were the only AUM size group to deliver positive returns, returning 1.38%. |
| MARKETS | ||
|---|---|---|
| Major events | Global markets were rocked in April by reciprocal tariffs that sparked sharp volatility across asset classes. Early-month equity losses were driven by fears of stagflation and global growth downgrades. However, a 90-day suspension of certain tariffs, along with renewed US-China trade dialogue, helped sentiment recover late in the month. Safe havens outperformed broadly, though the US dollar notably weakened. | |
| Equities | | Global equity markets endured extreme swings in April. US tariffs imposed on 2 April triggered a steep selloff, with the S&P 500 logging its worst two-day drop since 2020. Asian equities were hit particularly hard, with the Hang Seng suffering its largest one-day fall since the 1997 crisis. Sentiment improved mid-month as trade deal prospects emerged, helping global equities claw back losses. Growth outperformed value in the US for the first time in 2025. |
| Government bonds | | Flight-to-safety flows drove global government bond yields lower, though US Treasuries experienced notable intra-month volatility. The 10-year Treasury yield fell slightly by month end, despite sharp swings tied to evolving tariff news. European yields declined more consistently, supported by a 25bps ECB rate cut. Yields on German and French 10-year bonds decreased. Peripheral European bonds and UK gilts also rallied. |
| Corporate bonds |
| Credit markets were volatile but relatively resilient. US investment-grade corporates ended flat to modestly negative, while high yield was mixed. Emerging market local currency bonds outperformed again, buoyed by US dollar weakness and improving risk sentiment late in the month. |
| Currencies | The US dollar dropped sharply in April as growth concerns undermined its safe-haven appeal. The Swiss franc and Japanese yen rallied. The euro made gains as the ECB cut rates. The Chinese yuan ended slightly lower despite notable early declines, while most EM currencies appreciated against the US dollar. The Argentinian peso fell following an IMF deal, while the Indian rupee recovered late-month on trade optimism. | |
| Commodities | | Commodity prices broadly declined on weaker global growth expectations. Commodity indices fell, led by steep losses in oil and gas. Gold bucked the trend as volatility and a weaker US dollar spurred demand. Industrial metals fell, though losses narrowed after the tariff pause. Cocoa and coffee prices rose on supply concerns, while silver and platinum prices fell on deteriorating industrial sentiment. |
The Hedge Fund Data Engine is a proprietary database maintained by Aurum Research Limited (“ARL”). For information on index methodology, weighting and composition please refer to https://www.aurum.com/aurum-strategy-engine/. For definitions on how the Strategies and Sub-Strategies are defined please refer to https://www.aurum.com/hedge-fund-strategy-definitions/
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