Hedge Funds Record 7th Month Of Growth

Hedge funds chalked up a seventh consecutive month of positive performance in May, adding 0.20% on average, according to the Eurekahedge Hedge Fund Index.

Distressed debt funds led the way, gaining 1.87% on the month, bringing their year-to-date gains to 9.34%. They were followed by long/short equities funds, up 1.46% on the month (6.99% YTD); event-driven funds, up 1.22% on the month (5.01% YTD); multi-strategy funds, up 0.31% on the month (3.32% YTD); and fixed-income funds, up 0.14% on the month (3.22% YTD).

The biggest losers for the month were CTA/managed futures, down 1.69% (and down 0.19% YTD); macro hedge funds, down 0.90% (but up 1.26% YTD); arbitrage funds, down 0.29% (but up 3.03% YTD); and relative value funds, down 0.08% (but up 3.47% YTD).

In regional terms, Japan funds continued their gains, adding 0.42% in May (and 18.34% YTD). Asia ex-Japan funds added 2.35% in May (and 7.61% YTD); North American funds, were up 1.06% on the month (4.46% YTD); European funds, up 0.83% on the month (3.21% YTD); emerging markets up 0.60% on the month (3.66% YTD).

Eastern Europe and Russia funds shed 1.51% in May (and are down 3.99% YTD) and Latin American funds shed 0.34% (but are up 1.14% YTD).

Total asset flows for 2013 stand at US$50 billion and the total industry is now US$1.87 trillion.