Hedge funds witnessed the seventh consecutive month of positive returns in May amid mixed returns in global markets. The Eurekahedge Hedge Fund Index was up 0.32%1 during the month, while the MSCI World Index2 declined by 0.45% in May.
May started off on a good note with positive economic data from the US, leading to rallies in global equity markets, specifically in North America where market indices reached all-time highs. The US dollar strengthened against most major currencies, going above 100 level against the Japanese yen for the first time since 2009. The positive sentiment turned mid-month amid weak manufacturing numbers from China and uncertainty regarding the withdrawal of the US Federal Reserve’s asset purchase program.
May 2013 and April 2013 returns across regions
Most major hedge fund investment regions delivered positive returns May, with Asia ex-Japan hedge funds reporting the strongest returns during the month. The managers outperformed the market for the third consecutive month gaining 2.04% in May while the MSCI Asia Ex Japan Index3 was down 4.35% - the largest returns were posted by funds focused on Greater China, up 4% in May.
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1Based on 58.40% of funds which have reported May 2013 returns as at 14 June 2013
2MSCI AC World Index All Core (USD)
3MSCI AC Asia Pacific Ex Japan Index All Core (USD)