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Hedge funds continue recovery despite losses for fixed income, macro and AI hedge fund strategies


Hedge fund managers ended May in the green, with the Eurekahedge Hedge Fund Index up 0.18 per cent over the month, trailing behind the 0.84 per cent gain posted by the MSCI AC World Index over the same period.  

On a year-to-date basis, fund managers gained 0.32 per cent with 14 per cent of them posting returns in excess of 5 per cent.
 
North American fund managers topped the table among geographic mandates, gaining 1.14 per cent supported by the region's equity markets which performed well during the month. The S&P 500 index gained 2.16 per cent in May, while the tech-heavy NASDAQ index rallied 5.61 per cent. Eastern Europe and Latin America focused hedge funds posted steep losses as the strengthening of the US dollar weighed down on their returns.
 
Across strategic mandates, event driven funds lead with their 1.69 per cent return over the month, which brought their year-to-date return to 2.01 per cent. On the other hand, fixed income managers lost 0.79 per cent in May, bringing their year-to-date performance into the red for the first time in the year.
 
The Eurekahedge CTA/Managed Futures Hedge Fund Index slipped down 0.08 per cent in May, despite the positive performance of the underlying sub-indices. Commodity, FX and trend following hedge funds gained 0.99 per cent, 0.54 per cent and 0.13 per cent respectively over the same period.
 
Fund managers overseeing more than USD500 million in assets underperformed their smaller peers, with the Eurekahedge Large Hedge Fund Index and the Eurekahedge Billion Dollar Hedge Fund Index down 0.41 per cent and 0.95 per cent respectively in May. On the other hand, small and medium hedge funds gained 0.38 per cent and 0.08 per cent respectively over the same period.
 
AI hedge funds were down for the second consecutive month, losing 1.58 per cent in May. This loss brought their year-to-date return down to -2.71 per cent, placing them near the bottom of the heap among all strategic mandates.
 
The recovery of crypto-currency hedge funds proved to be short-lived, as preliminary numbers indicated an 11.66 per cent loss in May, dragging their year-to-date performance deeper into the red. The Eurekahedge Crypto-Currency Hedge Fund Index is down 22.71 per cent year-to-date while bitcoin prices have declined by 45.98 per cent over the same period.

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