Global Investing Matters
Kurt Voldeng is the Chief Investment Officer and Chief Operating Officer of Commerce Asset Management LLC and Portfolio Manager of the AdvisorShares QAM Equity Hedge ETF (QEH).
The revised April numbers for hedge funds came out on Friday, May 15th. According to HFR, the long/short equity universe returned +1.90% in April. This compares favorably against the Morningstar L/S Equity Category Average of +0.00%. Year to date, the long/short hedge funds have returned +4.00% compared to +1.22% for the long/short mutual funds.
In April, strong returns were generated by long/short hedge funds in Asia (particularly China), Eastern Europe (particularly Russia), Frontier Markets, and Brazil. According to Morningstar, long/short mutual funds’ investments are predominantly North American based, so it is of little surprise that they are falling behind their hedge fund brethren.