Hedge funds gained 0.78 per cent in May, its third consecutive positive month, according to the Barclay Hedge Fund Index compiled by BarclayHedge. Year to date, the Index is up 0.85 per cent.

Sixteen of Barclay’s 18 hedge fund indices had gains in May. The Technology Index was up 2.74 per cent, Distressed Securities gained 2.14 per cent, Healthcare and Biotechnology was up 2.30 per cent, European Equities gained 1.65 per cent, and the Equity Long Bias Index added 1.21 per cent.

“Good news on the US economic front helped push the S&P 500 Total Return Index to a 1.80 percent gain, just shy of its all-time high,” says Sol Waksman (pictured), founder and president of BarclayHedge.

The Equity Short Bias Index lost 1.54 per cent in May, and the Global Macro Index slipped 0.26 per cent.

At the end of May, nine of Barclay’s hedge fund indices have gains, and nine have losses.
The Event Driven Index is up 3.60 per cent, Distressed Securities have gained 2.93 per cent, Merger Arbitrage is up 2.69 per cent, Emerging Markets have gained 2.22 per cent, Equity Short Bias is up 1.77 per cent, and Convertible Arbitrage has gained 1.58 per cent.

The Healthcare and Biotechnology Index is down 7.06 per cent for the year, European Equities have lost 4.20 per cent, Pacific Rim Equities are down 2.40 per cent, and the Equity Market Neutral Index has lost 1.38 per cent.

The Barclay Fund of Funds Index gained 0.62 per cent in May, but has lost 2.42 per cent year to date.