Hedge funds fell for a second consecutive month in Could with a return of -0.4%, dragging year-to-date returns additional into the pink at -1.4%. A steeper than anticipated rise in US shopper costs in Could raised considerations about aggressive rate of interest hikes by the Federal Reserve to quell value pressures that might ship the financial system into recession.
Key highlights from the report:
- HFM’s International Composite Index was down -0.4% in Could and -1.4% year-to-date, whereas the HFM FoHF Composite Index declined -3.5% year-to-date.
- Billion-dollar membership funds trailed smaller funds for the primary time in 2022, decreasing their lead over smaller funds in 2022 to 2.2%.
- Occasion-driven and stuck earnings/credit score funds had been the most important drags on the month, down 1.0% and 1.0% respectively. Conversely, multi-strategy, macro and RV/arbitrage funds bucked the general adverse pattern to put up returns of 0.5%, 0.3% and 0.2% respectively.
- Asia Pacific was the poorest performing area in 2022 as China struggles to maintain its zero Covid mannequin amid the emergence of recent variants.
- Managed futures funds have seen their successful streak finish at 5 months as they returned -0.8% in Could, decreasing 2022 YTD return to 9.1%; however stay the very best performing top-level technique in 2022.
- Macro funds have posted 4 consecutive months of optimistic returns since February 2022, the very best run amongst top-level methods.