April was a strong month for hedge funds, with every strategy in the InvestHedge Index positive. Leading the pack were emerging markets where both equity and debt markets ran up, a welcome rebound after a negative March. Arbitrage has been more consistently solid in 2003 and April's return of 0.91% saw year-to-date returns at 3.04%. Global macro was also strong as short positions on the dollar were a favourable trade, and the 0.98% return was gratifying after reversals in March led to -1.51%. Macro is now the third most successful sub-strategy year-to-date, with a return of 2.92%.