Hedge funds gained 0.50 per cent in May according to the Barclay Hedge Fund Index compiled by BarclayHedge. The Index is up 4.13 per cent in 2017.
The Barclay Hedge Fund Index has now been profitable for seven months in a row, with a cumulative gain of 6.10 per cent. The Barclay Technology Index has gained 12.27 per cent in the first five months of 2017, its strongest start in 18 years.
“Concerns based on weak retail sales, two consecutive monthly declines in consumer confidence, and uncertainty over Trump’s ability to deliver on infrastructure spending and tax cut plans drove investors to the safety of bonds,” says Sol Waksman (pictured), founder and president of BarclayHedge. “Those concerns, however, were not enough to keep the global equity rally from extending into a seventh month of consecutive gains.”
Thirteen hedge fund indices had gains in May. The Technology Index jumped 3.14 per cent, European Equities gained 1.74 per cent, Pacific Rim Equities were up 1.07 per cent, Merger Arbitrage gained 0.94 per cent, and the Equity Long/Short Index added 0.93 per cent.
“Led by tech stocks, the S&P 500 and NASDAQ made new all-time highs in May,” says Waksman. “Markets in Europe and Asia also moved higher.”
Four indices lost ground in May. Healthcare & Biotechnology gave up 1.85 per cent, Equity Market Neutral lost 0.96 per cent, and Distressed Securities were down 0.66 per cent.
Year to date, all of Barclay’s 17 hedge fund indices have a positive return in 2017. Following the 12.27 per cent gain by the Technology Index, Emerging Markets are up 8.08 per cent, Healthcare and Biotechnology has gained 6.29 per cent, European Equities are up 6.16 per cent, and Equity Long Bias has gained 4.61 per cent.
