Equity Hedge Funds Missed April’s Month-End Rally: J.P. Morgan

Equity hedge funds struggled in April, losing 0.70% for the month according to J.P. Morgan’s Prime Brokerage Global Hedge Fund report, making it their worst month since losing 0.97% in January and pulling YTD returns down to 0.47% compared to 2.56% for the S&P 500 (INDEXSP:.INX). Ironically, part of the reason equity hedge funds took a hit in April because they were ready for the sell-off that took place early in the month. Correlations and volatility started to rise, but markets recovered quickly and managers that had prepared for a more sustained correction weren’t positioned to take advantage of the…