Hedge Fund Gains Edge out Broader Market

June 10, 2002 (PLANSPONSOR.com) - Hedge funds produced a near flat return of 0.11% in May, according to numbers from the Hennessee Hedge Fund Advisory Group.

Despite the meager increase, hedge funds still beat the broader indices over the month. According to Hennessee:

  • the S&P 500 fell by -0.74%
  • the Dow Jones Industrial Average dipped -0.21%
  • the Nasdaq slumped by -4.29%.

In year-to-date terms, hedge funds are up 0.86%, while:

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  • the S&P 500 is down 6.53%
  • the Dow Jones Industrial Average is down -0.95%
  • the Nasdaq has lost some -17.15% of its value.

May Winners

The top three performers for the month of May, which are also the top performers year-to-date, were:

  • Pacific Rim, which gained 3.12%, buoyed by positive macroeconomic data in Japan
  • Short-Biased, which was up 2.52%
  • Financial Equities, which increased by 1.71% as companies bought up their own stock to support prices


The worst performing hedge fund indices for May were:

  • Latin America, which fell by -4.37% as political instability left investors jittery
  • Healthcare/ Biotech, where stocks slid -2.61%, threatened by class-action suits concerns that patents were expiring
  • Growth, which slid -1.32%.