Hedge Funds Outperform Nasdaq and Dow in May

June 8, 2001 (PLANSPONSOR.com) - The Average US Hedge Fund returned 1.7% net of fees, outperforming the Nasdaq and the Dow Jones Industrial Average, which returned minus 0.2% and 0.7% respectively, but came up short against the S&P 500 which increased by 1.9%, according to Van Hedge Fund Advisors International.

However, on a year-to-date basis, the Average US Hedge Fund has returned an estimated 3.1% outperforming all three benchmarks. Over 2001:

  • the Dow Jones has returned 1.9%
  • the S&P 500 has fallen by 4.4%
  • and the Nasdaq has lost 14.5%

Distressed Securities managers are posting the highest returns so far in May, with managers invest long and short in the debt and equity securities of troubled companies. The last years subdued markets translate into more opportunities for Distressed Securities managers.

Special Situations and Market Neutral-Securities Hedging funds have also performed well in over the month, and even Short Sellers are showing good preliminary returns after taking advantage of the sell-off in the closing days of the month.