The CSFB/Tremont Hedge Fund Index was up 0.15% in May 2005.
“Despite speculation over the fate of the hedge fund industry after some challenges in the credit and convertible arbitrage sectors, the Index reported a positive return in May and hedge funds generally fared better as the U.S. equities market rallied and the credit and convertible arbitrage sectors ended the month more positively than expected,” says Oliver Schupp, President of Credit Suisse First Boston Tremont Index LLC and senior member of the CSFB Hedge Fund Investments Group.
“The Managed Futures sub strategy reported the highest return this month, up 3.62%, as many long-term trend followers profited from long positions in global bond and equity markets and fundamental programs continued to pay off.”
The CSFB/Tremont Investable Hedge Fund Index is up 0.31% net in May. The Managed Futures sub strategy is on top, up 4.87% net.
For the CSFB/Tremont Sector Invest Index, Managed Futures topped the charts again, up 3.47% net.
“The Event Driven sub strategy, which was affected by the credit downgrades in the automobile sector and represents a significant portion of the Index, reported a positive 0.55%, bringing that sector up 2.29% year-to-date,” says Robert I. Schulman, Chief Executive Officer of Tremont Capital Management, Inc. “The Dedicated Short Bias sub strategy reported its first negative return in 2005, as expected after the rally in equities.”