Shorts thrive as longs suffer a dismal April


April's dismal equity markets had a predictable effect on equity-focused hedge funds, with many long-biased funds posting losses and short-sellers racking up big gains for the month. The S&P 500 lost 2.01% in April; while most hedge fund indices posted losses in the long/short category for April, they still outperformed the broad market indices.

Some savvy investors were even able to squeeze gains out of the month's brutal conditions. Steve Mandel's Lone Cypress fund posted an estimated 0.48%, bringing its year-to-date gain to 5.96%, in sharp contrast with many of his peers in the long/short equity space who