Skip to main content

Research Perspective Vol. 79

April 18 demonstrated another month of volatility and uncertainty in the markets, but this time hedge funds positioned themselves profitably to cut the last two months’ losses. The surge in 10-year U.S. Treasury yield was mainly driven by Fed’s plans for rate hikes this year and by the rally in commodity prices. On the other hand, the aftermath of ECB’s decision to keep its monetary policy unchanged was the decrease on Eurozone governments’ bond yields. Only equity hedge strategies were negative in April, while event-driven, fixed income, macro and CTA strategies were positive trying to recoup losses from February and...