Key Takeaways
- • Hedge funds posted gains in April following equity market strength, with the S&P 500 rising more than 10%, though most multistrategy managers lagged the index return due to their defensive positioning and diversified asset allocations.
- • Millennium Management returned 2.7% in April, bringing year-to-date performance to 3.6% for the $84.2 billion fund, while Citadel's Wellington fund gained 1.4% in April and stands at 2.4% year-to-date, with its Tactical Trading fund up 2.8% for the month and 8.3% for 2026.
- • ExodusPoint Capital, the $19 billion multistrategy firm led by Michael Gelband, posted a 4% April gain and returned to positive year-to-date territory, while $19 billion Schonfeld's flagship Partners fund advanced 2.5% during the month.
- • The April rebound reversed significant March losses across multiple hedge fund strategies, with the strong equity market recovery enabling major managers to erase prior-year declines despite underperformance relative to broad market indices.
Summary
Hedge funds posted meaningful gains in April as equity markets rallied sharply, providing relief after a challenging March that left many managers underwater for 2026. The S&P 500 surged more than 10% during the month, though most multistrategy hedge funds failed to capture equivalent returns due to their diversified positioning across asset classes and geographic markets.
Izzy Englander's Millennium Management led April's performance among major multistrategy peers with a 2.7% monthly return, according to Business Insider reporting. The $84.2 billion flagship has now recovered to a 3.6% gain for the year, fully erasing March's drawdown. Citadel, Ken Griffin's $67 billion Miami-based operation, posted more modest but meaningful gains: its Wellington flagship fund returned 1.4% in April and stands at 2.4% year-to-date, while the firm's Tactical Trading fund—which combines fundamental stock selection with algorithmic strategies—advanced 2.8% for the month and 8.3% for 2026.
Michael Gelband's ExodusPoint achieved the strongest April performance among the highlighted managers with a 4% return, returning the $19 billion fund to positive year-to-date performance after March losses. Schonfeld, another $19 billion multistrategy manager that weathered March relatively well, posted a 2.5% gain in its flagship Partners fund during April.
The April recovery underscores a structural characteristic of multistrategy managers: their tight risk management and diversified trading approaches provide downside protection during market stress but limit upside capture during sharp rallies. While concentrated hedge funds likely achieved higher single-month returns, the established multistrategy leaders traded some April upside for the defensive characteristics that prevented steeper March declines. The extent to which April's rebound represents sustained market recovery rather than a temporary relief remains unclear heading into the remainder of 2026.
Izzy Englander's Millennium Management led April's performance among major multistrategy peers with a 2.7% monthly return, according to Business Insider reporting. The $84.2 billion flagship has now recovered to a 3.6% gain for the year, fully erasing March's drawdown. Citadel, Ken Griffin's $67 billion Miami-based operation, posted more modest but meaningful gains: its Wellington flagship fund returned 1.4% in April and stands at 2.4% year-to-date, while the firm's Tactical Trading fund—which combines fundamental stock selection with algorithmic strategies—advanced 2.8% for the month and 8.3% for 2026.
Michael Gelband's ExodusPoint achieved the strongest April performance among the highlighted managers with a 4% return, returning the $19 billion fund to positive year-to-date performance after March losses. Schonfeld, another $19 billion multistrategy manager that weathered March relatively well, posted a 2.5% gain in its flagship Partners fund during April.
The April recovery underscores a structural characteristic of multistrategy managers: their tight risk management and diversified trading approaches provide downside protection during market stress but limit upside capture during sharp rallies. While concentrated hedge funds likely achieved higher single-month returns, the established multistrategy leaders traded some April upside for the defensive characteristics that prevented steeper March declines. The extent to which April's rebound represents sustained market recovery rather than a temporary relief remains unclear heading into the remainder of 2026.
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