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Hedge Funds Hold On in May – Barely

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Stockholm (HedgeNordic) – Hedge Funds returned +0.26% in May, according to the Preqin All-Strategies Hedge Fund benchmark, marking the seventh consecutive month of positive returns. This was by comparison to a marginal -0.06% on the Nordic Hedge Index NHX Composite (85% reporting).

“Hedge fund performance has continued to make ground in May, despite some concerns about slowing growth in the U.S. and Europe. There have only been three months since the start of 2016 in which hedge funds saw losses, and this should bolster investor confidence in the asset class,” nevertheless, said Amy Bensted, Head of Hedge Fund Products at Preqin.

Europe and Asia-Pacific-focused funds outpaced North American-focused funds +1.08% respectively to +0.22%.

Multi-strategy funds posted the highest returns at +1.40%, for May, with relative value funds the only leading strategy to experience losses, posting -0.38%., UCITS funds gained +0.43%, funds of hedge funds returned +0.43%, while alternative mutual funds experienced losses of -0.04%.

CTAs gained +0.28% in May, taking its YTD performance into barely positive territory for the first time in 2017, at 0.09%. By comparison, they remained negative on the NHX, at – 0.96% for May (-3.22% YTD).

Medium-sized funds posted the highest returns of any size classification, at +0.80%. 12-month returns for the industry stand at 10.33%, despite falling slightly, surpassing investor expectations, according to Ms Bensted.

“At the end of H1 2016, hedge fund investors reported that they did not broadly expect hedge fund performance to improve in the next 12 months: however, since then the industry performance has reached double figures for the period,” she said.

Hedge funds have recorded only three months of losses since the beginning of 2016.

“Fund managers will be looking to capitalize on this momentum to show investors the vale of hedge funds in providing downside risk protection and the potential for returns,” Ms Bensted added.

 

Picture: (c) benjamin-haas-fotolia.com

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Glenn Leaper, PhD
Glenn Leaper, PhD
Glenn W. Leaper, Associate Editor and Political Risk Analyst with Nordic Business Media AB, completed his Ph.D. in Politics and Critical Theory from Royal Holloway, University of London in 2015. He is involved with a number of initiatives, including political research, communications consulting (speechwriting), journalism and writing his post-doctoral book. Glenn has an international background spanning the UK, France, Austria, Spain, Belgium and his native Denmark. He holds an MA in English and a BA in International Relations.

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