Though May marked a decrease in hedge fund losses, some managers still consider the month disappointing.
The Hennessee Group Hedge Fund Index for May decreased -1.15% (+6.09%), putting hedge fund declines lower than broad equity markets.
Broad equity markets also fell, with the S&P 500 down -2.88 (+2.75% YTD), the Dow Jones Industrial Average dropping -1.75% (-4.20% YTD) and the NASDAQ Composite Index losing -6.19% (-1.20%).
The S&P 50’s decline was the exchange’s worst month since December 2002 and its worst May in more than 20 years.
But hedge funds suffered troubles on both sides of the portfolio, with the beginning of the month feeling momentum driven gains, hurting the short book and the end of the month bringing large draw-downs, which bruised the long side of the book.