Hedge funds have turned in “steady to excellent” performance YTD, with more than 75% of managers posting gains through May’s equity rebound, according to a report by Alternatives Watch citing performance data from hedge fund research and intelligence provider PivotalPath.
The firm’s Composite Index rose 2% in May, lifting the year-to-date return to 2.1%, comfortably ahead of the S&P 500’s 1.06% gain and the Nasdaq’s 1.02% decline over the same period.
Strong showings from equity- and event-driven strategies anchored the rally. PivotalPath’s Equity Diversified Index jumped 4.4% in May—pushing its 2025 return to nearly 5%—while the Event-Driven Index climbed 3%. Sector-focused managers gained 2.8%, and equity quants added 2.2%. Even volatility hedges rose 1.7%, and credit strategies delivered 1%.
Global macro funds meanwhile eked out a 0.4% advance, but trend-following CTAs lagged, as the Managed Futures Index fell 1.5%, dragging its 2025 loss into double digits at -10%.
PivotalPath’s data, covering over 3,000 institutionally relevant hedge funds and $3tn in industry assets, shows that 77% of managers finished May in positive territory, and two-thirds are profitable year to date.
