Managed futures suffer but other hedge funds rally
Hedge funds are expected to post returns of 3.61 per cent in May, continuing their positive rally on the back of good conditions in the equity, credit and commodities markets, according to the Credit Suisse/Tremont Hedge Fund Index.
However, managed futures have continued to suffer after a strong performance last year, with the strategy down 0.2 per cent for May, after an April performance of negative 3.24 per cent.
This is the fifth consecutive negative monthly return for the strategy. Sixty-two per cent of hedge fund assets have been reported.
Emerging markets posted the best returns of 7.04 per cent for May on the back of a 17 per cent surge in the Sensex Index in India following the elections, and increasing industrial production in Japan and China.
Convertible arbitrage and fixed income arbitrage have also performed well for the month, with performances of 6.03 per cent and 6.45 per cent respectively. Convertible arbitrage has posted the strongest performance for the year, with a return of more than 19 per cent for the year to date.
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