Hedge Funds Up 1.16% In May

Jun 10 2014 | 1:22pm ET

Hedge funds more than doubled their year-to-date returns in May, according to an industry benchmark, although the figure remains pretty pedestrian.

The average hedge fund rose 1.16% last month, the HFRI Fund Weighted Composite Index shows. The index is up 1.99% in 2014—less than the 2.1% earned by the Standard & Poor’s 500 Index last month alone.

Emerging markets and activist funds were the best performers in May, with the former up 3.18% (2.21% year-to-date) and the latter 3.5% (3.67% YTD). India- and Russia and Eastern Europe-focused funds were especially strong, with gains of 12.91% (25.12% YTD) and 9.06% (down 1.2% YTD), respectively.

Global emerging markets funds earned 2.62% on the month (2.97% YTD), yield alternatives funds 2.56% (8.01% YTD), Asia ex-Japan funds 2.46% (2.08% YTD) and fundamental growth funds 2.31% (1.86% YTD).

Volatility funds added 1.66% in May (4.49% YTD), equity hedge funds 1.37% (1.71% YTD), technology and healthcare funds 1.23% (1.65% YTD), relative-value funds 1.16% (4.11% YTD), systematic diversified funds 1.12% (down 0.46% YTD), special situations funds 0.99% (3.2% YTD), macro funds 0.85% (0.31% YTD), distressed and restructuring funds 0.83% (3.92% YTD), currency funds 0.66% (0.01% YTD), merger arbitrage funds 0.51% (1.04% YTD) and convertible arbitrage funds 0.5% (2.98% YTD).

Commodity funds took a hit last month, falling 2.03% (1.46% YTD). Short-bias funds, hurt by rising stocks, fell 1.53% (down 1.83% YTD).

Funds of hedge funds added 1.07% in May (0.88% YTD).

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Editor's Note