Hedge funds were up 0.92 per cent in May, according to the Barclay Hedge Fund Index compiled by BarclayHedge. The Index has gained 4.58 per cent year to date.

“Developed market equities lead the way to a profitable month for most hedge fund strategies,” says Sol Waksman, founder and president of BarclayHedge. “Japan outperformed as the Nikkei rose 5.6 per cent driven by positive economic news, the S&P 500 gained 1.29 per cent in spite of expectations of rising US interest rates, and the MSCI Europe Index advanced 0.8 per cent in the face of Greek exit fears.”

All but two of Barclay's 18 hedge fund indices had gains in May. The Healthcare & Biotechnology Index jumped 5.38 per cent, Pacific Rim Equities gained 2.22 per cent, European Equites were up 1.85 per cent, Merger Arbitrage added 1.41 per cent, and the Equity Long/Short Index gained 1.39 per cent.

The Equity Short Bias Index was down 2.14 per cent in May, and has lost 6.35 per cent year to date. Equity Short Bias is the only hedge fund sector with a loss in 2015.

After five months, Barclay's Healthcare & Biotechnology leads all hedge fund strategies with a 12.64 per cent gain. Pacific Rim Equities are up 8.02 per cent, Emerging Markets have gained 7.97 per cent, European Equites are up 5.22 per cent, and Merger Arbitrage has added 5.23 per cent.

The Barclay Fund of Funds Index gained 0.94 per cent in May, and is up 3.82 per cent for the year.