Hedge funds rose 1.13% last month, more than doubling their year-to-date gains but still leaving them far behind the broader markets.
The Credit Suisse Hedge Fund Index is up 1.86% on the year after May’s gain, less than half the more than 4% return of the Standard & Poor’s 500 Index.
Managed futures funds did best in May, rising 3.09% to cut their average year-to-date loss to 0.92%. Long/short equity funds rose 1.51% (2.05% YTD), distressed funds 1.45% (4.95% YTD), emerging markets funds 1.35% (down 1.27% YTD), event-driven funds 1.07% (4.02% YTD) and global macro funds 1.02% (0.41% YTD).
Multi-strategy funds rose 0.89% (2.43% YTD), risk arbitrage funds 0.56% (1.85% YTD) and fixed-income arbitrage funds 0.45% (2.99% YTD).
Only three strategies lost ground in May: Short-bias funds shed 1.1% (down 1.65% YTD), convertible arbitrage funds fell 0.52% (up 2.27% YTD) and equity market neutral funds edged down 0.27% (down 1.22% YTD).