Equity funds lose ground as markets drop
Hedge funds lost 3.09 per cent in May, according to the Barclay Hedge Fund Index compiled by BarclayHedge.
“Fear was in the driver’s seat in May as investor worries about a liquidity crisis in Europe and a ‘double-dip’ recession in the US drove global equity prices lower,” says Sol Waksman, founder and president of BarclayHedge.
The Barclay Emerging Markets Index dropped 5.19 per cent, equity long bias lost 4.75 per cent, European rquities fell 3.71 per cent, Pacific Rim rquities were down 3.59 per cent, and the Equity Long/Short Index lost 3.09 per cent.
“All of the MSCI Developed Market country indexes lost ground during the month,” says Waksman. “And all but one of the emerging market indexes was down as well. Peruvian equities were the only winner in the emerging markets sector in May.”
Only one of Barclay’s 18 hedge fund indices had a gain in May. The Barclay Equity Short Bias Index jumped 7.60 per cent, taking advantage of the widespread equity market losses.
“As of today, 85 per cent of the hedge funds that have submitted their May return have reported a loss,” says Waksman.
The Barclay Fund of Funds Index lost 2.81 per cent in May, and is down 0.59 per cent year-to-date.
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