Hedge funds had another strong month in May, as the Eurekahedge Hedge Fund Index rose 2%1 during the month, despite persistent inflation concerns weighing on the markets and on investor sentiment. Managers made good gains from equities, which recorded mixed returns across different regions (the MSCI World Index rose 1.1%), and from commodities (as commodities such as crude oil and gas, among others, rallied strongly) during the month. A marginally stronger US dollar (against some major currencies) also translated into some gains, over May.
In terms of regional mandates, European managers recorded the best returns, returning 2.7% on the month. Eastern European and Russian managers were the main contributors to returns across Europe; the Eurekahedge Eastern Europe & Russia Hedge Fund Index returned 5.7% during the month (partly because one constituent fund positively skewed the region’s average considerably). As for managers in other European regions, they have made healthy gains from commodities, as well as from long and short exposure to regions equities (the MSCI Europe Index lost 0.5%).
