Wednesday, 26 October 2016
Last updated 3 hours ago
Jun 10 2013 | 9:30am ET
Hedge funds posted modest gains last month, as stocks continued to soar.
The Lyxor Hedge Fund Index rose 0.33% in May, far behind the Standard & Poor's 500 Index's jump of about 2%. The hedge fund benchmark is up just 3.53%, compared to the S&P500's roughly 16%.
"The economic data strengthened significantly starting with the U.S. April nonfarm payrolls report in the beginning of May," Lyxor wrote. "Risk assets generally rallied in May but the bigger theme was the sharp rotation out of defensive sectors and assets into those with a more cyclical tilt."
Special-situations funds did best in May, rising 3.05%. Long-bias funds rode the market rally to a 1.66% return on the month, while merger arbitrage funds added 1.53%.