Hedge funds surge toward record monthly returns, marking their strongest performance in more than ten years.
Goldman Sachs reports equity long-short funds rising 7.7% this month, the highest level since 2016.
Year-to-date gains reach 6.7%, with Asia- and China-focused strategies leading overall performance.
Managers recover quickly after March volatility, restoring momentum across multiple hedge fund strategies.
Funds deliver 1.6% average gains in the first quarter, reversing earlier declines from market turbulence.
Equity long-short strategies attract strong inflows, the largest since 2022, reflecting renewed investor confidence.
Hedge funds limit losses effectively, capturing only 35% of declines seen in traditional 60/40 portfolios.
Return dispersion hits a three-year high, highlighting a widening gap between top and underperforming funds.
Specialized strategies generate alpha-driven returns, with healthcare, market-neutral, and Asia-focused funds outperforming peers.
