Hedge Funds Drop 0.26% In May

Jun 5 2012 | 2:28pm ET

Hedge funds reported a median loss of 0.26% in May 2012, a month that looked a lot like September 2011, according to data from eVestment|HFN.

Equity and commodity market felt the effects of Europe’s sovereign crisis as investors moved to “safer” assets, resulting in U.S. Treasury yields falling and the dollar rising against all major currencies.

In this environment, macro and managed futures strategies and funds focused on currency markets appear to have been the best performers, up 1.65%, 3.25% and 0.94%, respectively. Credit funds (down 1.55%) have again outperformed equity-focused strategies (down 2.95%) and emerging markets exposure (down 3.58%) experienced higher losses than developed markets (down 1.05%). eVestment|HFN says larger funds also performed “noticeably better” across the strategy spectrum.

Through April 2012, investors directed most of their money into credit, macro and commodity strategies as well as more diversified multi-strategy funds while pulling it from long/short equity, event driven and emerging market strategies.

 


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