The Barclay Hedge Fund Index gained 5.77 per cent in May and is now up 10.75 per cent in 2009, according to BarclayHedge.

The Barclay Hedge Fund Index gained 5.77 per cent in May and is now up 10.75 per cent in 2009, according to BarclayHedge.

All 18 of Barclay's hedge fund indices had a positive return in May.

The Barclay Emerging Markets Index soared 10.72 per cent, Equity Long Bias jumped 6.94 per cent, the Event Driven Index gained 5.90 per cent, Distressed Securities rose 5.56 per cent, Technology gained 4.38 per cent, Global Macro was up 4.23 per cent, and Pacific Rim Equities rose 4.01 per cent.

The Barclay Emerging Markets Index is leading all hedge fund strategies in 2009 with an impressive 20.88 per cent return after five months. Emerging Markets gained 4.59 per cent in March, 8.84 per cent in April, and 10.72 per cent in May.

'Emerging markets have provided excellent trading opportunities for hedge fund managers, offering double-digit gains in seven of the past ten years,' says Sol Waksman, founder and president of BarclayHedge. 'Overall, the Barclay Emerging Markets Index is up 223.62 per cent in ten years, a compound annual return of 12.46 per cent.'

Other top year-to-date performers include Barclay's Convertible Arbitrage Index, up 19.83 per cent; the Event Driven Index, up 13.16 per cent; Equity Long Bias, up 11.92 per cent; and the Multi-Strategy Index with a gain of 11.16 per cent.

'May also witnessed a continued decline in the price difference between US Treasuries and high yield bonds,' says Waksman. 'The differential declined to 400 basis points at the end of May from 650 at the end of March. The narrowing of the price differential is beneficial to hedge funds trading fixed income.'

The Barclay Fund of Funds Index gained 3.05 per cent in May.