COPENHAGEN, Denmark (HedgeWorld.com)–Preliminary results indicate that Scandinavia’s hedge fund industry had a rough May. For the 31 funds that have so far reported performance figures for the month, returns averaged a negative 1.96%, trimming provisional year-to-date-returns to 2.79% from the 4.84% registered at the end of April.

However, due to the June bank holiday, several funds are yet to report their performance data. While 23 of the 45 Swedish funds included in Hedgenordic’s Nordic Hedgefund Index have already reported, only four of the 11 Finnish funds, three of the 17 Danish funds, and just one of the 11 Norwegian funds that make up the NHI have done likewise.

So while the performance numbers so far reported vary quite widely–average returns were ?? 1/2 ?? 1/2 1.21% in Denmark, ?? 1/2 1.52% in Sweden, ?? 1/2 2.3% in Norway and -?? 1/2 5.2% in Finland–the data may be significantly skewed. Year-to-date returns–2.41% for Sweden, 2% for Denmark, 4.1% for Norway and 2.62% for Finland–should similarly be treated with caution.

To date, 26 funds of the 43 that use equities-based strategies have reported their May numbers, along with two out of eight which employ fixed-income strategies, three out of eight multi-strategy funds, one of the five managed futures funds and seven out of 23 funds of funds. Looking at performance, the numbers are again patchy, but make interesting reading.

The month’s worst performers, with a return of ?? 1/2 2.44%, were funds using equities strategies. However, these funds have still returned a respectable 4.34% year-to-date. Fixed income (?? 1/2 ?? 1/2 1.28%), multi-strategy (?? 1/2 0.97%) and funds of funds (?? 1/2 0.98%) all had a negative month. Multi-strategy funds and funds of funds remain in positive territory for the year, with year-to-date returns of 1.97% and 3.5% respectively, but fixed-income strategies have had a thin time of things, with returns registering ?? 1/2 5.32% so far in 2006.

The best-performing funds both for the month and the year to date are those in managed futures. For the NHI firms employing this strategy, year-to-date returns average 7.98%, while the one firm to so far disclose May numbers reported a 1.9% return for the month.

MDesapinto@HedgeWorld.com

Contact Bob Keane with questions or comments at bkeane@investmentadvisor.com.