Hedge Funds Lose 0.9% In May

Jun 3 2011 | 1:22pm ET

Hedge funds fell almost 1% last month as weak economic data weighed on stocks.

The Credit Suisse Liquid Alternative Beta Index dropped 0.9% on the month, cutting its year-to-date return to 4.05%. The Standard & Poor's 500 Index, burned by the same economic worries, did even worse on the month, losing 1.3%.

Long/short hedge funds' decline was in line with the broader hedge fund index, falling 0.93% in May. The strategy, which is up 5.58% on the year, "fell amidst downgraded economic outlooks and disappointing first-quarter earnings reports," Jordan Drachman, head of alternative beta strategies research at Credit Suisse, said.

Global strategies did even worse, losing 1.13% on the month (up 2.99% year-to-date), while event-driven funds fell a more modest 0.39% (up 5.465 YTD). Merger arbitrage funds managed a positive return on the month, adding 0.21% (5.24% YTD).


In Depth

Q&A: Star Mountain's Brett Hickey On Investing In 'The Growth Engine Of America'

Sep 22 2017 | 5:06pm ET

Lower middle-market companies form the economic fabric of the nation, but they can...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Don’t Overlook These 6 Hybrid Cloud Concerns

Sep 14 2017 | 6:27pm ET

Cloud-based technology solutions have made tremendous inroads into the alternative...

 

From the current issue of