Index provider Standard & Poor's has announced that hedge fund returns rose by 1.01 per cent in April, the sixth consecutive month of increase.
The S&P Hedge Fund Index, which measures the performance of a range of different hedge fund strategies, also showed an increase of more than five per cent in returns when compared with the same period a year ago.
Justin Dew, senior hedge fund specialist at Standard & Poor's, said that the market at the moment was providing many lucrative opportunities for savvy hedge fund managers.
"Six of the nine hedge fund strategies performed well in April," he said.
"Rising interest rates, a skyrocketing commodity market and a benign credit market drove performance throughout the month."
Standard & Poor's figures also show a very strong month for managed futures funds, with the index up a massive 6.36 per cent during April, and an increase in returns of 9.66 per cent compared with April 2005.
This increase comes following a month of record metal prices, with both gold and copper bringing investors high returns.