Early estimates released Wednesday show the HFN Hedge Fund Aggregate Average declined 0.90% in May but is up 6.66% for the year through May 31.
May was the first negative month in the last seven, according to the equal-weighted average of all single manager hedge funds in the HedgeFund.net database. The database includes more than 6,100 current hedge funds, funds of funds, and managed futures vehicles.
Equity markets worldwide sold off in May, and strategies highly influenced by equity returns with a long bias consequently shouldered most of the losses. The HFN Long Only Average fell 4.66%, which was worse than the S&P 500's decline. The HFN Small Micro Cap Average dropped 1.16%, and the HFN Technology Sector Average 3.95%. But the HFN Short Bias Average was up 3.86%.
Winners for the month were managers whose strategies are inherently dependent on volatility. This includes many arbitrage- and option-based strategies. The HFN Statistical Arbitrage Average rose 2.18%, HFN Convertible Arbitrage Average 1.45%, and HFN Options Average 1.34%.
HedgeFund.net, a division of Channel Capital Group Inc., is a source of hedge fund news and information for 46,000 accredited investors worldwide.
