Credit Suisse: Hedge Funds Add 3.6% In May

Jun 9 2009 | 7:07am ET

Another hedge fund index shows a big advance for the industry last month, although it says hedge funds continued to trail the broader markets.

The Credit Suisse/Tremont Hedge Fund Index added 3.61% in May, according to early estimates based on 62% of assets reporting. May’s performance pushed in the index up to 6.25% for the year, well ahead of the Standard & Poor’s 500 Index, which jumped 5.59% last month to reach 2.96% year-to-date.

All strategies save for managed futures rose last month. Emerging markets funds, which posted a dreadful 2008, enjoyed the best month, adding 7.04%. The strategy is now the best performer year-to-date at 12.52%. Fixed-income arbitrage funds added 6.45% (12.05% year-to-date), convertible arbitrage funds returned 6.03% (19.38% YTD) and equity-market neutral funds rose 5.06% (2.71% YTD).

Multi-strategy funds returned 4.3% in May (10.52% YTD) and long/short equity funds advance 4.14% (7.12%). Event-driven funds added 4.31% (5.66% YTD), led by event-driven multi-strategy funds, which jumped 4.99% (6.7% YTD). The other event-driven substrategies, distressed and risk arbitrage, did less well, returning 3.09% (3.75% YTD) and 0.45% (3.94% YTD), respectively.

Global macro funds rose 1.52% (4.33% YTD) and dedicated short-bias funds added 0.97% (down 7.63% YTD) after April’s disastrous 9.57% drop.

The lone loser in amidst May’s advances, managed futures funds shed 0.2% (down 6.22% YTD).

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