Hedge funds were down 1.15% worldwide in May, the first monthly drop for the industry in ten months, according to data provided by Eurekahedge.
However, on average hedge fund managers in all regions outperformed their respective underlying market indices. The MSCI World Index declined by 2.52% during the month, Eurekahedge says.
Net asset flows remained positive at $4.7 billion invested in hedge funds, totaling more than $100 billion year to date.
Latin American hedge funds outpaced other regional managers with positive returns of 0.65%. North American hedge funds were down 0.36%, although they finished the month better than the S&P 500, which declined 1.4% in May. Similarly, European managers registered losses of 0.52%, outperforming the MSCI Europe Index, which lost 4.28%.
CTA/managed futures funds registered the largest declines, down 3.07% for the month. Relative value and fixed income hedge funds were up 0.25% and 0.49% respectively, while returns from arbitrage and distressed debt funds were flat to slightly negative.
(CG)