Hedge funds delivered another month of positive performance in May, although performance dipped month-on-month, with a total weighted average return of 0.4%, according to the latest data from hedge fund administrator Citco.
Net inflows into funds based in the Americas and Europe continued in May, while funds situated in Asia once again saw outflows. Overall, net inflows in May reached $1.9bn, almost four times’ April’s total of $0.5bn, as subscriptions of $7.1bn came in well ahead of redemptions totalling $5.2bn.
A total of 48% of the funds administrated by Citco had positive returns in May, dipping from 65% in April, while the rate of return spread widened to 8.6% in May, showing signs of increased returns volatility.
Equities strategies (0.9% weighted average return) and Multi-Strategy (0.3% weighted average return) were the top performing strategy types, with Fixed Income Arbitrage funds experiencing the largest drop in performance, which saw the weighted average return dropping from 2.2% in April to 0.2% in May.
Some negative outliers within the Global Marco funds category dragged down the overall performance of other strategy types.
Multi-Strategy funds and Hybrid funds continued to see positive capital inflows – net inflows of $1.7bn and $0.8bn respectively.
