Gun-shy hedge funds, fearing volatility and bracing for further redemptions, were heavily hedged and in cash going into the March-April market rally and, as a result, missed most of the upside. The Absolute Return U.S. Equity and Global Equity Indices trailed the two-month 18.73% rise of the S&P 500 Index by double digits, rising 4.08% and 4.98%, respectively, over the same period.
An...