Hedge funds returned an average of 0.21 per cent in May 2017, and aggregate returns are +3.20 per cent YTD in 2017, according to eVestment’s Hedge Fund Industry Asset Flow Report for May 2017.
May performance was led by funds focused on corporate capital structures, while commodity and currency funds continue to be the primary drag on industry performance.
Asset flows for the month stood at USD10.52 billion for the month, bringing YTD flows to USD23.32 billion. Total industry AUM sits at USD3.130 trillion, with multi-strategy, directional credit and macro funds seeing strong investor interest.
Convertible arbitrage strategies had the strongest performance in May, retuning 0.56 per cent, bringing YTD returns to 3.25 per cent. Other strong performers in May were multi-strategy credit funds, coming in at +0.46 per cent and managed futures funds, at +0.38 per cent. In spite of the positive May returns, managed futures funds continue to be negative YTD, though just slightly, at -0.20 per cent.
Commodity strategies continue to have a tough time this year, returning -1.55 per cent in May, with YTD performance at -3.20 per cent. This comes off a positive performance of +5.65 per cent in 2016. Distressed funds also dipped negative in May, retuning -0.51 per cent, but they are still positive YTD at +2.84 per cent.
Japan, China and Asia ex-Japan funds all saw positive results in May. On the other hand, India, Russia and Brazil funds all dipped negative in May, but remain in positive territory YTD. India funds remain among the strongest performers so far this year, with YTD returns at +18.33 per cent.
In terms of asset flows, multi-strategy funds were big winners in asset flows in May, pulling in USD3.65 billion in new assets, bringing YTD asset flows to USD17.14 billion. Managed futures funds, meanwhile, saw among the biggest asset losses in May, with AUM in these funds falling USD1.05 billion. YTD flows remain positive at USD4.19 billion.
Among firm domiciles, funds based in the Americas saw USD11.41 billion positive asset flows in May.
