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Bank of America

May 14, 2026

Hedge Fund Monthly Update

Monthly UpdateEquitiesMacro Economic IndicatorsRates CreditInformation TechnologyEnergy

Hedge funds saw broad gains in April 2026 with a 2.8% median return, led by a 14.8% surge in Technology funds. Q1 2026 marked the second-highest quarterly inflows for the industry at $44 billion.

Key Takeaways

  • 1.April 2026 was a broadly positive month for hedge funds, with a median return of 2.8% and all strategies and regions finishing in the green.
  • 2.The Equity TMT sector saw its best month since January 2008, with the HFR Technology Index returning 14.8% driven by AI earnings and a semiconductor surge.
  • 3.Hedge fund industry AUM reached $5.2tn following the second-highest quarterly inflows on record ($44bn in Q1 2026).

Table of Contents

  • What's Happening in Hedge Funds?
  • 1) Green sweep
  • 2) Best month for Equity TMT
  • 3) Record dispersion
  • 4) 2nd highest Quarterly inflows
  • 5) Equity L/S Leverage

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Authors

Author(s)

Securities

HFR Technology IndexSPXVIXMSCI APAC

Themes

AI Monetization vs. AI SpendRising Leverage & Risk-On SentimentRegional Outperformance in APAC

Regions

North AmericaAsia PacificEuropeUnited StatesTaiwanSouth Korea