Equity rallies led to positive hedge fund returns in May, though managers remain cautiously positioned, according to Jordan Drachman, Head of Resea
Equity rallies led to positive hedge fund returns in May, though managers remain cautiously positioned, according to Jordan Drachman, Head of Research for Alternative Beta Strategies at Credit Suisse.
‘Overall, hedge funds generated positive performance in May as equity markets continued their upward rally,’ says Drachman. ‘The Credit Suisse Long/Short Equity Replication Index (AIR Long/Short Equity Index), which has a 91% correlation to the Credit Suisse/Tremont Long/Short Equity Hedge Fund Index, was up 2.81% (net) for the month, while the Credit Suisse Global Macro Replication Index (AIR Global Macro Index) finished up 0.23% (net) over the same period.
‘As evidenced by these returns, hedge funds are maintaining a positive net exposure to equity markets, which has allowed them to capitalize on the upside of recent market rallies; however, many managers continue to remain cautiously positioned.’ Adds Drachman.
AIR Indices are designed to replicate the performance of major hedge fund strategies, and enable investors to gain liquid, transparent insight into the Global Macro and Long/Short Equity sectors of the Credit Suisse/Tremont Hedge Fund Index. The AIR platform also offers inverse indices that approximate short exposure to the aggregate returns of the universe of Long/Short Equity and Global Macro hedge fund managers.
