NEW YORK (HedgeWorld.com)–Hedge funds in the MSCI Hedge Fund Index continued on their downward slide with a return of negative 0.6% in May, bringing year-to-date returns through May to 1.5%, according to preliminary data.
The index had been down 1.1% in April after preliminary returns came in at negative 1.3% (see Previous HedgeWorld Story).
The best-performing MSCI category was the MSCI Specialist Credit Index, which was flat in May and was up 3.9% through the first five months of the year. That index includes distressed securities funds, long/short credit funds and private placement funds. April’s performance was 0.5%, down from the preliminary result of 1%.
The worst performing for the month and year was the MSCI Directional Trading Index, which includes futures, global macro and tactical asset allocation funds. The index returned negative 1% in May and was down 0.5% year-to-date through May. April’s final return was negative 4.1%, up slightly from the preliminary figure of negative 4.2%.
The MSCI Multi-Process Group and MSCI Relative Value Indexes both returned negative 0.4% in May. The Multi-Process category, made up of event-driven and multi-process hedge funds, returned 3% year-to-date through May after its April return was revised to negative 0.8% from negative 0.7%. The Relative Value index returned 1.2% through May.
The MSCI Security Selection Index, which contains long/short equity, market neutral equity and short-biased funds, returned negative 0.7% in May and is up 1.7% year-to-date through May. April’s return was revised upward to negative 0.9% from negative 1.2%.
The MSCI World Equity Index returned 0.9% in May and 1.4% year-to-date through May, while the MSCI World Sovereign Debt Index returned 0.8% and negative 1.7% in the same respective periods, according to MSCI.
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