May Modest for Hedge Funds

June 6, 2002 ( - The Average US Hedge Fund eked out an estimated 0.4% net return in May, according to preliminary estimates from Van Hedge Fund Advisors International, Inc.

May’s estimated gain pushes the year-to-date performance of the Average US Hedge Fund up to 2.0% net, ahead of all the major stock market averages.
In comparison, over the month:

  • the S&P 500 dipped -0.7%,
  • the NASDAQ lost a further -4.3%, and
  • the Dow Jones rose 0.1%

Early data from the hedge fund advisory firm shows that around 60% of reporting hedge funds were profitable in May, and three-quarters of reporting US hedge funds beat the S&P 500 in May.

According to VAN, funds emphasizing short selling or market neutral strategies were among May’s better performers.

VAN’s hedge fund index information is based on returns received from the hedge funds. Hedge fund returns are net of fees and performance allocations.