eVestment: Hedge funds generally positive in May 11 June 2018London Reporter: Brian Bollen
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Hedge funds were generally positive during the month of May, according to the latest Hedge Fund Industry Performance Report from eVestment.
Hedge funds returned an average of +0.65 percent in May, and are +0.84 percent in 2018.
Nearly 63 percent of reporting products were positive in May, but the difference between the average positive and average negative returns was the largest in nearly two years.
This continued the established 2018 trend, said eVestment, but certain segments of the industry were hit by notable events.
The re-emergence of European sovereign debt issues, for one, caused losses, which dragged down both macro and fixed income/credit segments.
Losses were not widespread, but some large losses likely related to volatility in European bond markets dragged down overall macro and fixed income/credit strategies in May.
For credit strategies, nearly three-quarters of reporting products were positive during the month, but the average return of -0.76 percent was the lowest since January 2016.
Aggregate returns showed a third loss in the past four months for managed futures funds, resulting in strategy-leading losses in 2018.
Long/short equity strategies rebounded after losses in February and March, noted eVestment.
Many of the largest quantitative equity strategies are performing reasonably well in 2018, even before the strong gains seen aggregately in May, eVestment added.
Brazil-focused funds posted their largest losses since November 2016. India is now the worst performing segment of the hedge fund industry in 2018.
MENA-oriented funds experienced their first loss of this year. Performance seems more related to Africa exposure than to the Middle East, suggested eVestment.
China-focused funds performed very well after a string of three consecutive monthly losses.
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