Hedge fund returns increased 0.78 percent in April, reversing two consecutive monthly declines. The swing of 134 basis points was driven by gains in all seven tracked fund types as managers capitalized on plunging volatility and activist and special situation strategies. For the first four months of 2018, hedge fund returns were little changed, according to data compiled in the Bloomberg Hedge Fund Database. Funds finished the first quarter down 0.56 percent. The CBOE Volatility Index had its biggest monthly decline since July 2016, prompting hedge funds to cut bets on further market swings.