Mon, Sep 23, 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. Albright Capital builds on emerging markets impact strategy, signs on to IFC principles[more]

    Bailey McCann, Opalesque New York: Albright Capital has adopted the International Finance Corporation's Operating Principles for Impact Management. The firm has also developed its own impact measurement system as part of the implementation of the principles. The IFC's principles were

  2. Investing: Hedge funds getting burned as growth stocks trounced by value, Why investors are prioritizing health care in a big way, Fannie, Freddie soar as hedge funds score wins on two fronts[more]

    Hedge funds getting burned as growth stocks trounced by value From Bloomberg: A hedge-fund favorite is rapidly losing ground in the stock market just as one of the industry's least-loved sectors picks up. Growth stocks, generally companies that are seeing rapid profit increases, have drop

  3. PE/VC: Supersized unicorn: Root Insurance leaps to $3.65bn valuation with $350m round[more]

    Root Insurance is now valued at $3.65 billion after a $350 million funding round - the largest single venture capital round ever in the state. The 3-year-old auto insurer, now the startup with the highest valuation of any in Ohio, has raised a cumulative $523 million in VC and another $100 mi

  4. Testing hedge performance when stocks crash[more]

    Bonds have historically been a reliable buffer for stock exposure. But low yields and potential reversion to a more positive stock/bond correlation would likely translate to less protection. Gold has been a solid crisis hedge but has experienced long stretches of negative inflation-adjusted returns.

  5. PE/VC: The FBI is investigating a venture capital fund started by Peter Thiel for financial misconduct, Why venture capital firms need more women partners and entrepreneurs[more]

    The FBI is investigating a venture capital fund started by Peter Thiel for financial misconduct From Vox: Federal investigators are probing the conduct and practices of Mithril Capital, a venture capital firm co-founded by Peter Thiel, Recode has learned. US officials - including t