Hedge funds provided downside protection in May, losing far less than the MSCI World Index.
The MSCI World lost 9.32% while the Eurekahedge Hedge Fund Index lost 1.24% during the month.
This brought the year-to-date hedge fund return to 2.23%.
However, it was also the third month in a row that hedge fund returns were down.
Eurekahedge, a hedge fund data firm, said that 920 hedge funds were up more than 10% year-to-date, the most prolific strategy among them being long/short equities. Also 153 funds were up more than 20%, and ten funds were up more than 50%.
Eurekahedge also reported that nearly 350 new hedge funds were launched in the first five months of the year.
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