Hedge funds delivered their strongest monthly performance since 2020, with a global hedge fund index jumping 5% in April. Technology-focused funds led the surge, rising 14% during the month as stocks like Intel, Alphabet, and AMD posted dramatic gains. This marks a significant rebound after March's losses, which were some of the industry's worst since the 2020 pandemic.

Alphabet jumped by approximately one-third, while Intel more than doubled and AMD soared 74%. Major hedge fund firms benefited significantly, with Marshall Wace's $23bn Eureka fund gaining 7%, Balyasny's Atlas fund up 3.1%, Millennium rising 2.7%, and Citadel's Wellington fund advancing 1.4%. These returns put many funds on track for positive annual performance.

The rally coincided with decreased market volatility, as the Vix "fear gauge" fell from around 25 to less than 17. This stability helped highly levered funds that borrow to boost returns. However, the strong correlation with equity markets has raised questions about diversification benefits, particularly after crowded trades in March led to widespread losses across different strategies.