The Index was buoyed most by strong returns in emerging market and managed future funds and has risen 7.05% since the start of 2003. In April, the index was up 1.96%, according to data released by the CSFB/Tremont Index.
Leading May’s charge was managed futures, which was 5.14% higher for the month and 13% better since January. This was followed by emerging market funds gaining 5.01% for the month after turning in a 3.89% gain in April.
Other gains for the month were seen in:
- Long/Short Equity: 3.68%
- Global Macro: 2.96%
- Event Driven Multi Strategy: 2.37%
- Event Driven: 2.35%
- Convertible Arbitrage: 1.76%
- Fixed Income Arbitrage: 1.28%
- Equity Market Neutral: 1.22%
Conversely, short-selling funds, which borrow stocks hoping to buy them back later at a lower price, lost 5.45% in May, this month’s only losing strategy. This marks a turnaround for these types of funds that ranked among the best performers when stocks were falling.
By comparison, a competing hedge fund index, the Van Global Hedge Fund Index, a competing index, posted a rise of 3.7% in May to bring the year-to-date average returns to 7.4% (See Hedge Fund Index Up 3.7% in May ). Further, while CSFB/Tremont’s returns are strong, they were not able to top the Standard & Poor’s 500 stock index, which rose 5.3% in May.
Performance for the CSFB/Tremont Hedge Fund Index is calculated monthly. Full May and year-to-date returns for all categories are at www.hedgeindex.com.