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

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Midtown's Plaza District Fades As Manhattan Office Landscape Shifts

Nov 22 2016 | 6:32pm ET

Lower leasing costs, more efficient office space and the hope of projecting an image...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR