Hedge funds were down in May amid heightened risk aversion and falling global markets. The Eurekahedge Hedge Fund Index lost 1.55% during the month while comparatively the MSCI World Index shed1 9.32% amid broad market declines in all regions.
Total assets under management (AUM) decreased by US$13.7 billion, bringing the size of the industry back below the US$1.75 trillion mark. Most of the declines in assets were due to net negative asset flows, with investors pulling US$8.7 billion from the industry, while performance-based losses accounted for US$5 billion.
