Hedge Funds Outperformed for the first time since 2008

According to CNBC, hedge funds are faring better than the stock market in 2018, after nearly a decade of underperformance.

Managers in the $3.2 trillion hedge fund industry posted a 0.38 percent gain in April, thanks to the higher volatility, the rally in energy prices and some well-placed bets in fixed income, according to industry tracker HFR.

The HFRI Fund Weighted Composite Index finished April narrowly ahead of the S&P 500, which posted a loss, including dividends, of 0.38 percent through the first four months. It was the first time the industry has outperformed the basic stock market index since 2008.

Health-care and technology stock contributed the most this year. They combined have netted a 4.54 percent gain. The fixed income-asset backed strategies contributed 3.12 percent gain and active trading produced a 3.12 percent return.

The rising oil prices have driven up the energy gains. The sector is up 1.5 percent year to date in the S&P 500, trailing the HFR Energy/Basic Materials Index, which has gained 2.31 percent.

Cryptocurrencies also helped hedge fund managers. The HFRI Blockchain Composite Index has tumbled 19.3 percent year to date but jumped 47.1 percent in April as prices for bitcoin and other cryptos rise.

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