With equities moving higher and credit spreads tightening, hedge funds with equity beta exposure showed strong returns. The exception was with the CTA and global macro indices which posted the largest declines. The best hedge fund strategies included market directional, fundamental growth, distressed, and emerging markets. It was a clear risk-on environment for the month.
Nevertheless, most hedge fund strategies did not do well during the first quarter of the year. The only strong performer was the systematic CTA index which posted returns over 6%. The directional equity hedge funds have return differentials of over 12 percent relative to the CTA leader.