Hedge Funds Shed 1.24% In May

Jun 12 2012 | 11:24am ET

The Eurekahedge Hedge Fund Index lost 1.24% in May, outperforming underlying markets (as measured by the MSCI World Index) by 8.08%.

The May totals bring the hedge fund index’s year-to-date returns to 2.23%.

CTA/managed futures funds provided a ray of light in an otherwise gloomy month, gaining 2.60%. Arbitrage funds also ended the month in the black, adding 0.26%.

Otherwise, it was a sea of red ink, with the worst performance put in by long/short equities, down 3.41%; followed by distressed debts funds, down 2.54% and event-driven funds, down 2.23%. Also losing ground in May were multi-strategy funds, down 1.62%; fixed-income funds, down 1.13%; relative value funds, down 0.68%; and macro funds, down 0.52%.

Year to date, however, the picture is brighter: all strategies remain in positive territory, led by relative value funds (up 4.08%) and arbitrage funds (up 3.41%).

All regional funds were down in May, led by Eastern Europe and Russia funds which plummeted 8.66%. Japan funds lost 3.47%, Asia ex-Japan funds lost 3.43% and emerging markets funds were down 3.19%. North American funds shed 1.77%, European funds lost 1.63% and Latin American funds lost 1.44%.

Again, the YTD picture is brighter, with some regions posting gains, led by Latin American funds which are up 4.46%. The only losers in yearly terms are Eastern Europe and Russia (down 2.65%) and Japan (down 0.15%).

Eurekahedge reports that assets in macro hedge funds were at historical high levels in May, surpassing US$140 billion for the first time, and the industry has expanded to the tune of 350 new funds so far in 2012.

The firm's data shows  920 funds are up over 10% YTD, led by long/short equities; 153 funds are up more than 20%; and 10 funds are up more than 50%.

Funds of hedge funds were down 1.88% in May but up 0.67% YTD.


In Depth

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Lifestyle

Einhorns Busts At WSOP, Finishes In 173rd

Jul 15 2014 | 10:48am ET

Greenlight Capital founder David Einhorn’s World Series of Poker won’t end at...

Guest Contributor

The Truth About Track Record Portability

Jul 24 2014 | 5:55am ET

The number of private funds converting to mutual funds has increased significantly...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note