Mon, Jul 13, 2020
A A A
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. PPP: Troubled firm Marto Capital asked for PPP money - and got approved, records show, Fallen hedge fund's head among money managers getting PPP relief, Wall Street investors scored emergency government loans amid pandemic, The asset managers approved for PPP money[more]

    Troubled firm Marto Capital asked for PPP money - and got approved, records show From Institutional Investor: Marto Capital - a former wunderkind founded by an ex-Bridgewater Associates star - got approved for emergency funds from the U.S. government, records showed Monday. Katina Stef

  2. PE/VC: Not all VC investors are being slowed down by the pandemic, GP-led secondaries to increase in post-Covid-19 resurgence, Some private-equity firms see early signs of a deal thaw, New York private equity goes for the jugular in Germany[more]

    Not all VC investors are being slowed down by the pandemic From Pitchbook: As the venture capital industry pumped the brakes on dealmaking, a handful of investors are taking a different tack. Among the top 20 most active US VC firms with assets under management of $500 million or more,

  3. Satori Capital buys into hedge fund manager Mountain Cove Capital Management[more]

    Laxman Pai, Opalesque Asia: Dallas-based alternatives manager founded on the principles of conscious capitalism, Satori Capital has agreed to back compatriot investment firm Mountain Cove Capital Management. Satori, a multi-strategy firm with more than $1 billion in assets under management, co

  4. SEC proposes to amend Form 13F[more]

    B. G., Opalesque Geneva: The Securities and Exchange Commission (SEC) said on Friday that it had proposed to amend Form 13F - for the first time in more than 40 years. The proposal will update the reporting threshold (currently at $100m) for institutional investment managers and make other change

  5. News Briefs: An amateur investor turned $15,000 into $1m then lost it all, the latest cautionary tale in the day-trading frenzy, SoftBank-Backed Beike Zhaofang Aims to Raise $3bn in U.S. IPO[more]

    An amateur investor turned $15,000 into $1m then lost it all, the latest cautionary tale in the day-trading frenzy From Business Insider: Robinhood-user Richard Dobatse said he turned $15,000 into $1 million, and then lost everything. He told the New York Times: "They make it so easy fo