Hedge funds enjoyed broad, if small, gains last month, according to Hedge Fund Research's HFRX index suite.
The HFRX Global Hedge Fund Index rose 0.75% in May, less than half the Standard & Poor's 500 Index's return for the month. The benchmark is up 4.55% on the year, less than one-third the S&P's gain.
Convertible arbitrage funds led the way in May, adding 2.78% (8.92% year-to-date), followed by event-driven funds (2.16% in May, 0.95% YTD), fundamental value funds (2.09%, 9.3% YTD). Special situations funds added 1.77% last month (10.57% YTD), distressed restructuring funds 1.58% (3.88% YTD), credit funds 1.1% (5.35%), equity hedge funds 0.83% (6.61% YTD) and relative-value funds 0.73% (2.91% YTD).
The losing side of the ledger features fundamental growth funds, down 1.41% (up 2.8% YTD), macro funds and commodity trading advisers, down 0.95% (down 0.41% YTD), systematic diversified CTAs, down 0.8% (down 1.69% YTD), emerging markets funds, down 0.14% (up 3.23%), and the year's best-performing strategy, master-limited partnerships, which fell 0.09% in May but remain up 15.88% on the year.