Hedge Funds Fall 2.73% In May, Credit Suisse Says

Jun 9 2010 | 11:30am ET

Hedge funds—except those shorting a plummeting stock market—took a beating in May, according to early results from the Credit Suisse/Tremont Hedge Fund Index.

The average hedge fund dived 2.73% last month, cutting the index’s year-to-date return to just 1.52%. But it could have been worse: May’s misfortune sent four of the Credit Suisse Index Co.’s 13 strategy and substrategy indices into the red on the year.

Indeed, all of those strategies save dedicated short-bias took a hit last month. Managed futures funds “led” the way with a 4.42% decline (down 0.58% year-to-date). Long/short equity funds didn’t do much better, losing 4.08% (down 1.12% YTD), followed by equity market-neutral funds, down 3.87% (down 4.15% YTD) and event-driven multi-strategy funds, down 3.67% (up 2.86% YTD).

With the Standard & Poor’s 500 Index plummeting almost 8% and the MSCI World Index dropping almost 10%, it’s no surprise to see short-bias have a strong month, up 6.03%. The strategy is still the worst-performer on the year, however, down 7.63%.

Other “winners” included global macro, which dropped just 0.82% on the month (up 3.41% YTD), with managers benefitting from their liquidity amidst May’s market volatility. Fixed-income arbitrage funds also did relatively well, dropping only 0.76% and claiming the mantle of best strategy in the first five months of 2010 with a 4.57% return.

Multi-strategy funds were down 2.14% in May (up 1.35% YTD), risk arbitrage funds were down 2.37% (down 1.11% YTD), distressed funds were down 2.63% (3.98% YTD), event-driven funds were down 3.23% (up 3.3% YTD), convertible arbitrage funds were down 3.4% (up 1.7% YTD) and emerging markets funds were down 3.65% (down 0.11% YTD).

Credit Suisse’s figures are based on 78% of the assets in its index reporting.


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

A Hard Look At Your ‘Soft’ Hedge Fund Marketing Information

Dec 8 2016 | 9:03pm ET

Conventional wisdom holds that due diligence examines quantitative as well as qualitative...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR