May is over, and the hedge fund industry couldn’t be happier.
HedgeFund.net’s HFN Hedge Fund Aggregate Index dropped 2.74% last month to cut its year-to-date return to 1.03%. The HFN results are just the latest from a hedge fund index that show the industry lost between 2% and 3% in May, their worst month in the past 18.
Of course, hedge funds weren’t alone in suffering through a turbulent May; in fact, they did pretty well, all things considered. The Standard & Poor’s 500 Index plummeted more than 8% on the month.
In that sort of environment, short-bias funds were able to trim their 2010 losses, jumping 4.86% in May to leave them down 4.17% on the year. No others were so lucky.
Emerging markets hedge funds dropped 5.57% on the month, and are up 1.02% on the year. Long/short funds shed 3.91% in May (up 0.03% year-to-date), distressed funds shed 2.08% (up 6.08% YTD) and macro funds shed 0.41% (up 1.56% YTD).