Tech rally hands hedge funds biggest gains since 2020

A strong tech-led rally in April delivered hedge funds their best monthly performance since 2020, with an HFR global hedge fund index rising about 5% and technology-focused funds up roughly 14%. The S&P 500 jumped 10.4% and the Nasdaq Composite climbed 15.3% as large-cap tech names powered gains—Alphabet rallied about one-third, Intel more than doubled and AMD surged about 74%. Higher equity prices and lower volatility (VIX fell from ~25 to below 17) allowed many multi-manager and long-short funds to record notable gains, though some managers remain cautious about crowded trades and correlation to equity markets. Prime brokerage data show hedge funds increased net leverage in April as managers bought more stocks than they sold. Overall, the market backdrop of strong earnings, big tech investment and easing volatility boosted hedge fund returns and reduced near-term risk premia across equity strategies.