Opalesque Industry Update: Hedge funds gained 1.06% in May, according to the Barclay Hedge Fund Index compiled by BarclayHedge. The Index is up 5.87% year to date.|
“While improving consumer confidence and higher prices for US homes stoked concerns of Fed tapering, equity markets rallied even as interest rates moved higher,” says Sol Waksman, founder and president of BarclayHedge.
Overall, 16 of Barclay’s 18 hedge fund strategies had positive returns in May. The Barclay Healthcare & Biotechnology Index jumped 3.11%, Equity Long Bias gained 2.64%, the Distressed Securities Index rose 2.42%, Technology gained 2.36%, and Convertible Arbitrage added 1.81%.
The Barclay Fund of Funds Index gained 0.67% in May, and is up 4.82% year to date. The Fund of Funds Index now has seven straight months of gains.
The Equity Short Bias Index fell 4.01% in May and Pacific Rim Equities dropped 0.91%. “The Nikkei declined by 12 percent over the last eight trading days of the month as speculator concerns focused on the possibility of the BOJ having to scale back its policy of aggressive easing,” says Waksman.
Equity Short Bias is now down 17.14% year to date. The other 17 hedge fund strategies tracked by BarclayHedge are all in positive territory after the first five months of 2013.