Macro hedge funds lead industry gains in April

NEW YORK (Reuters) - Hedge funds posted gains of 2.33% in April, mostly driven by macro funds, which managed to perform well amid high volatility, a report by hedge fund data provider HFR showed on Friday.

Macro hedge funds, which bet on macroeconomics trends, rose 5.49% in the quarter, according to a macro fund asset weighted index. HFR said results were driven by strategies that benefited from skyrocketing inflation, rising interest rates and the Russia-Ukraine conflict.

In the first four months of 2022, macro hedge funds gained 13.37%, while the S&P 500 index declined almost 13%.

The industry as a whole was up 4.22% in the year.

"Hedge fund managers and investors have effectively adapted to the current fluid market paradigm defined by extreme volatility, massive dislocations, and tremendous uncertainty, demonstrating tactical flexibility and operating as liquidity providers through the volatility," said Kenneth J. Heinz, President of HFR in a statement.

At the other end of the spectrum, equity hedge funds lost 3.62% in April, but they still outperformed the S&P index, which was down 8.71% in the month.

(Reporting by Carolina Mandl; editing by Diane Craft)

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