Hedge Fund Losses
Hedge Funds Falter in May Amid Rocky Markets
Most hedge funds lost money in May's volatile markets, with stock- and commodity-focused funds bearing some of the biggest losses.
The HFRX Global Hedge Fund Index tracking about 250 funds fell 1.83% in the month as of May 27, wiping out earlier returns this year for a 0.97% year-to-date loss.
Its equity hedge sub-index, tracking funds that take long and short bets on stocks, was down 3.4%, while systematic macro funds that rely on computers to buy and sell stocks, currencies, commodities and interest-rate instruments lost 2.13% in the period.
The losses came in the worst month for stocks since August. The MSCI World Index of equities lost 2.45% and the S&P 500 declined 1.4%. Commodities took an even bigger hit as worries grew over the strength of the global economic recovery, with silver off by 21% and oil slipping 10% in the month. Source