Hedge funds made money from a stronger dollar and Brexit uncertainty to post gains for the third consecutive month in May.
The HFRI Fund Weighted Composite Index gained 0.4 % for the month, according HFR, a hedge fund data provider.
The May gain brings year-to-date performance for the composite index to 0.74%, topping most equity market indices, including the Nasdaq, Nikkei, FTSE and Dax, but narrowly trailing the S&P 500.
Event-driven strategies led the May performance, with the index that tracks these strategies increasing 1.3% on accelerated mergers & acquisitions activity. The rolling three-month gain for this strategy was 6.5% and year-to-date it gained 2.5%.
“Hedge funds posted gains for the third consecutive month in May, effectively navigating uncertainty associated with the upcoming Brexit vote, as well as shifting expectations of the timing and frequency of near term rate increases by the Federal Reserve,” said Kenneth J. Heinz, president of HFR.
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