Hedge Funds Fail To Catch Fire In May

Hedge funds are still struggling to find their footing in 2014, with most strategies losing further ground in May after declines in March and April.

The average hedge fund is up 0.04% this month, according to the HFRX Global Hedge Fund Index, and 0.42% on the year. But 10 of the 18 strategies and substrategies tracked by the suite are in the red through May 13.

Equity hedge funds have suffered the most, with fundamental growth funds shedding 1.15% (up 0.57% year-to-date) and equity market neutral funds 1.07% (up 1.56% YTD). Equity hedge funds overall lost 0.51% in the month's first two weeks (down 0.7% YTD).

Emerging markets funds also slipped, dropping 0.65% (down 3.02% YTD). Systematic diversified commodity trading advisers lost 0.21% (down 3.79% YTD), convertible arbitrage funds 0.2% (up 0.58% YTD), special situations funds 0.08% (up 1.78% YTD) and merger arbitrage funds 0.07% (up 0.49% YTD).

Master-limited partnerships continued to lead the way on the plus side, rising 1.14% (8.52% YTD). Multi-strategy funds rose 0.66% (1.45% YTD), distressed restructuring funds 0.53% (3.7% YTD), relative-value arbitrage funds 0.51% (1.29% YTD), credit funds 0.4% (2.46% YTD), macro funds and CTAs 0.16% (down 1.44% YTD) and event-driven funds 0.07% (2.19% YTD).