Hedge funds fail to match market

Hedge funds operating a convertible arbitrage strategy have failed to take advantage of strong performance in the convertible bond market, according to research by EDHEC-Risk out yesterday. Convertible arbitrage strategies saw returns of just 0.12 per cent in April, despite a 2.68 per cent return score for convertible bonds. Hedge funds have also struggled against the stock market, which has hit higher levels of growth than managed funds.