Hedge funds posted their best month since the financial crisis in April amid the torrid market rebound

• Hedge funds notched their best month in more than a decade in April as the broad market rally lifted nearly all risk assets from late-March lows.
• Eurekahedge's Hedge Fund Index jumped 3.7% last month, its biggest gain since May 2009 when funds surged in the wake of the financial crisis.
• Nearly 80% of the index's members posted gains in April, with 10% of managers enjoying double-digit returns, according to Eurekahedge's monthly report.
• April also saw the index's first monthly uptick since a mild 0.08% return in January.

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Hedge funds posted their best month in more than a decade as March's lows gave way to a resounding rally through April.

Eurekahedge's Hedge Fund Index gained 3.7% last month, its biggest jump since May 2009. A combination of Federal Reserve action, risk-on attitude, and optimism toward COVID-19 vaccine trials pushed investors back into the stock market. Major US indexes posted their best month since 1987 and rallied out of bear market territory.

Nearly 80% of the index's members gained in April, with 10% of managers posting double-digit returns. Eurekahedge's North American Hedge Fund Index jumped 5.4%, while its European peer gained 3.5%. The index for Asia excluding Japan posted the biggest regional win with a 6.5% return, while the Japan-focused hedge fund index leaped 1.6% through the month.

Read more: Bill Miller's record-setting fund beat the market for 15 straight years. He explains why he's still bullish on airlines today, even after Warren Buffett abandoned the industry twice.

April also brought the index's first monthly gain since a meager 0.08% return in January.

The firm's Crypto-Currency Hedge Fund Index surged 28.5% in April on the back of a broad crypto upswing. Bitcoin soared more than 35% through the month.

Despite the strong April performance, the main hedge fund index remains down 4.6% year-to-date. The S&P 500 and Dow Jones industrial average have also failed to erase their 2020 losses. Both indexes stabilized through the end of last month as volatility cooled and traders questioned the run-up's strength.

The Nasdaq composite broke through its December 31 close on Thursday, lifted by a growing interest in mega-cap tech stocks.

Eurekahedge's Hedge Fund Index includes 2,277 equally weighted constituents.

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