Fixed income arbitrage and global macro strategies were May’s top performers with weighted average returns of 2.7% and 2.6% respectively, according to the latest monthly report on hedge funds from Citco, the $1.8tn global alternative investment asset servicer.  The report reveals that hedge funds saw positive performance across most strategies, with an overall weighted average return of 1.7%. Equities strategies ranked third with a weighted average return of 1.8%.  Multi-strategy and commodities funds saw 1.4% and 0.1% respectively, while event-driven funds were negative for the second month in a row with –1.2%.  Hybrid funds saw the greatest net inflows of $1bn in May, leading for four consecutive months, followed by equities ($0.6bn), arbitrage and multi-strategy funds (both $0.5bn).  Emerging markets and global macro funds both had equal inflows and outflows, while event-driven funds had net outflows of $0.1bn.  Regionally, funds in the Americas saw net inflows of $2.7bn. Asia followed with $0.5bn, while Europe was flat.