Hedge funds gained 1.16 per cent in May, according to the Barclay Hedge Fund Index compiled by BarclayHedge.
The index is up 2.35 per cent after five months.
“An easing of Ukrainian turmoil fears, central bank signals of continuing easy money policies, and renewed M&A activity set the stage for a positive month for most hedge fund strategies,” says Sol Waksman, founder and president of BarclayHedge.
All but one of Barclay’s 18 hedge fund indices had gains in May. The Barclay Emerging Markets Index jumped 2.68 per cent, Equity Long Bias gained 1.04 per cent, the Multi Strategy Index was up 0.88 per cent, Healthcare & Biotechnology gained 0.87 per cent, and Technology added 0.81 per cent.
“As investors dialled up risk exposure, the emerging markets sector was a major beneficiary,” says Waksman.
The only losing hedge fund strategy in May was Equity Short Bias, which was down 2.15 per cent. Year to date, Equity Short Bias has lost 6.67 per cent.
The Healthcare & Biotechnology Index leads all strategies with a 7.03 per cent gain for the year. Distressed Securities are up 5.05 per cent, Fixed Income Arbitrage has gained 4.13 per cent, the Event Driven Index is up 4.06 per cent, and Convertible Arbitrage has gained 2.81 per cent.
The Technology Index is down 4.62 per cent through May, Pacific Rim Equities have lost 2.22 per cent, and Global Macro is down 1.07 per cent.
The Barclay Fund of Funds Index gained 1.01 per cent in May, and is now up 0.90 per cent in 2014.