The Credit Suisse/Tremont Hedge Fund Index is up 4.06% in May, with a year-to-date performance of 6.72%.
According to Oliver Schupp, President of Credit Suisse Index Co., the growth was the largest monthly gain since February 2000. Emerging markets were the strongest performers, finishing up 6.96%, Schupp said. The Emerging Markets sector has experienced a significant turnaround over the last three months as risk appetite seems to be returning to the markets, and investors are encouraged by positive signs of global growth and rising commodity prices.
Schupp added that convertible arbitrage managers also performed well in May as funds capitalized on the overall appreciation in convertible bonds globally.
Of the ten sub-strategies that the index measures, unsurprisingly only Dedicated Short Bias failed to see growth, with a fall of -0.55%, although this was far less that Aprils fall of -9.57%.