Mon, Dec 16, 2019
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge funds' four month run of positive performance ends in May

Tuesday, June 11, 2019
Opalesque Industry Update - Global trade disputes and oil price downturns took a toll on hedge funds in May, bringing an end to the industry's four-month run of positive returns. For the month, the hedge fund industry was down 1.47%, according to the Barclay Hedge Fund Index compiled by BarclayHedge, a division of Backstop Solutions.

By comparison, the S&P 500 Total Return Index was down 6.35% for the month. Year-to-date through the end of May, hedge funds returned 5.23%, while the S&P was up 10.59% on the year.

"Hopeful signs from U.S.-China trade talks vanished in the face of heightened tariffs and proved to be a drag on equity markets in May," said Sol Waksman, president of BarclayHedge. "The trade war and the accompanying decrease in oil prices further weighed down hedge fund returns."

While the overall industry was down in May, there were gainers among hedge fund sectors. Leading the way was the Option Strategies Index, up 1.93% for the month, followed by the Emerging Markets Eastern Europe Index and the Emerging Markets Eastern European Equities Index, both up 1.01% in May.

"Eastern Europe remains a strong economic story," said Waksman. "Economic expansion appears to be continuing in Poland, while first quarter growth in Romania exceeded projections and Hungary's first quarter growth was the strongest in almost 20 years."

Among the other sectors posting positive numbers in May were the Emerging Markets Global Fixed Income Index, up 0.74%, and the European Equities Index, with a 0.46% return for the month.

Far more sectors were in the red for May than in the black. The Technology Index was down 4.40% for the month, the Emerging Markets Global Equities Index, down 4.28%, the Emerging Markets Asian Equities Index, down 4.18% in May, and the Equity Long Bias Index dropped 3.47%.

Strong Eastern European economic performance showed up again in year-to-date returns. Through the end of May, the Emerging Markets Eastern European Equities Index was up 12.06% while the Emerging Markets Eastern Europe Index gained 11.17%. Other notable year-to-date gainers included the Healthcare & Biotechnology Index, up 11.90% on the year, the Emerging Markets Global Fixed Income Index, returning 9.95% year-to-date and the Technology Index, with an 8.15% return through the end of May.

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. 50 South Capital & Preqin highlight emerging manager outperformance in a new report[more]

    Bailey McCann, Opalesque New York for New Managers: New data from Preqin and 50 South Capital, the investment arm of Northern Trust, shows that emerging managers are outperforming established managers by almost 4% a

  2. An academic wrecking ball aims at hedge funds[more]

    From Bloomberg: Quant investing, and indeed much of the hedge fund industry, is built on the power and freedom that come with the ability to sell short. When you short a security (borrow and then sell it, meaning you make money if the price falls and you then re-buy it), you can profit when markets

  3. PE/VC: Private equity buys $101bn of European businesses, 30 under 30 venture capital 2020: Meet the young investors backing tech's next big thing[more]

    Private equity buys $101bn of European businesses From Bloomberg: European equities' cheap valuations have turned the region into a honeypot for private-equity and arbitrage funds looking to reap double-digit returns. With the buyout firms enjoying a massive amount of dry powder, especial

  4. PE/VC: The truth about private equity fund size, US VC investment in female founders hits all-time high[more]

    The truth about private equity fund size From Institutional Investor: As the end of the year approaches, institutional investors in private markets are wrapping up work on the last few funds we need to invest in to hit our targeted annual commitment levels. You see, private equity

  5. Crypto: Almost 70 crypto hedge funds have closed this year as institutional investors shy away, Central bank talk of launching cryptocurrencies is all bluff, Thailand and Hong Kong in crypto collaboration with cross border token project, Crypto loans see solid growth, platforms attract community interest, A Bitcoiner in the Senate? Is Bakkt CEO in US govt. good or bad for crypto?, Bank of France to test digital currency in 2020[more]

    Almost 70 crypto hedge funds have closed this year as institutional investors shy away From The Block Crypto: Nearly 70 crypto-focused hedge funds that largely cater to institutional investors, such as pension funds and family offices, have closed this year. The number of new fund