Hedge funds ended May in positive territory with the Eurekahedge Hedge Fund Index up 1.12%1 as global markets showed signs of stabilisation following a choppy start to the year. Moderate levels of global economic activity coupled with a supportive monetary policy outlook led to a pro-risk environment in May which saw equities and bonds appreciate while volatility levels subsided. On a year-to-date basis, hedge funds are up 1.88% while the MSCI World Index2 has returned 2.63% in the first five months of 2014. Billion dollar hedge funds tracked by Eurekahedge posted performance-based gains of US$6.6 billion in May while recording net asset inflows of US$1.0 billion as per preliminary figures. Since January 2013, these billion dollar hedge funds have delivered performance-based gains of almost US$70 billion while recording net asset allocations of US$161 billion.