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

Creating An Offshore Hedge Fund Dream Team: The Seven Key Players

Jun 26 2015 | 6:47am ET

If you want to set up an offshore hedge fund, like any great team, you’re only...

Lifestyle

Hedgies Set to Compete in Wall Street Decathlon

Jun 8 2015 | 12:37am ET

The Wall Street Decathlon — a 10-event physical challenge that will crown “Wall...

Guest Contributor

6 Essential Principles To Balance Your Investment Risk

Jun 26 2015 | 10:07am ET

In this article, financial expert Greg Silberman explores how to hedge a private...

 

Editor's Note