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

An Interview With Harvest Volatility Management's Rick Selvala

Mar 23 2017 | 5:39pm ET

Several years of extremely low interest rates have pushed some investors into equities...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

SEI: Private Debt Coming Into Its Own

Mar 8 2017 | 9:24pm ET

The explosive growth of private debt over the past few years has caused the lines...

 

From the current issue of