Hedge funds saw notable gains in May, benefiting from a resurgence in global equity markets fuelled by historically low unemployment and stable or slowly declining inflation rates, according to PivotalPath’s Composite Index.  PivotalPath’s Composite Index, which tracks hedge fund performance, appreciated by 1.1% in May, bringing its year-to-date gain to 6.1%.  Over the past 12 months, the Index has generated positive alpha of 6.3% relative to the S&P 500, despite a dip in equity markets in April followed by a recovery in May.  Managed futures, global macro and credit strategies were top performers, consistently producing the highest alpha on a rolling 12-month basis.  In May, smaller hedge funds, particularly those with equity concentrations under $100m in assets, outperformed their larger counterparts.