Opalesque Industry Update - Morningstar reported preliminary hedge fund performance for May 2013 as well as estimated asset flows through April. The Morningstar MSCI Composite Hedge Fund Index fell 0.2% in May but remains up 4.9% for the year to date. Over the trailing 12 months, the index rose 8.6%.|
U.S. equities rallied throughout the month in response to encouraging economic data, including rising consumer confidence and home prices. Small caps led the way, with the Morningstar MSCI Small Cap and Morningstar MSCI Small & Mid Cap Hedge Fund Indexes climbing 2.9% and 3.1%, respectively. Both indexes, however, trailed the Russell 2000 TR Index’s 4.0% gain.
In April 2013, single-manager funds in Morningstar’s Hedge Fund Database gained $1.3 billion in inflows. Merger arbitrage hedge funds gathered the most assets, netting $1.6 billion, followed by multistrategy hedge funds, which gained $483 million during the month.