Preliminary estimates put May’s HFN Hedge Fund Aggregate Average an equal weighted average of all single manager hedge funds in the HedgeFund.net database, at – 0.90%, marking the first negative month in the past seven.
Though 2006 is +6.66% to date, the result shows a slowing in what has been an otherwise positive year so far for hedge fund performance.
During May, equity markets worldwide sold off pushing a majority of the losses onto the shoulders of strategies highly dependant on equity returns.
The winners for May were funds whose strategies focus and depend on volatility.
HedgeFund.net compiles data from the more than 6,100 hedge funds, CTAs and fund of funds in its database to generate its average.