Managed Futures strategies were the best performers during the month, returning their biggest monthly gain this year. A general hedge fund index we watch was down 1.86% in May, comparing favorably to global equity returns with the S&P 500 Total Return (-6.01%) and MSCI World Equity (-8.99%) equity indices.
With concerns about both Greece and Spain, the financial crisis in Europe came into focus and rattled markets in May. Signs of slowing growth in the US and Asia also contributed to negative action in world equity markets. The big winner was U.S. treasuries.
Even Long-Short Equity funds that significantly lagged other hedge fund strategies in this environment outperformed global equity returns with a -4.24% return. Arbitrage funds also held their gains in May as market neutral strategies should.