The global hedge fund industry saw an aggregate return of +0.65% in May, according to the just-released eVestment May 2018 Hedge Fund Performance Report. The aggregate industry returns now stand at +0.84% year-to-date (YTD). Wide disparities in returns among fund types is hiding some segments of strong performance in the industry, however.
For instance, among primary strategies, Quantitative Directional Equity funds and Long/Short Equity funds were big winners for the month, returning +2.15% and +2.05% respectively. While Macro funds saw big losses, returning -2.31% for the month. Overall, nearly 63% of reporting products were positive in May, but the differential between the average positive and average negative returns was the largest in nearly two years.
Some other interesting points from the new report include:
- Managed Futures fund losses continued in May, with these funds returning -0.50%, bringing YTD returns to -2.79%, the most negative YTD returns among primary strategies.
- Among other primary strategies, Event Driven – Activist funds were strong performers, returning +1.84% in May. However, the YTD performance for these funds is still down at -0.37%.
- Among primary fund markets, FX/Currency and Volatility/Options Strategies funds were strong performers, with both types of funds producing returns just north of +1.4%.
- Brazil- and India-focused funds, both strong performers in 2017, are looking very weak in 2018, with returns of -7.90% and -4.74% respectively in May. India funds are now the worst performing segment among hedge funds for the year, with YTD returns of -9.18%.
- Asia-focused funds offered a mixed bag of returns during the month, with China-focused funds returning +5.75% in May, Japan-focused funds returning +0.25% and Asia ex-Japan-focused funds returning -0.97%.
To download a full copy of the report, please click here.