Despite a difficult market environment in May, hedge funds continued to attract new assets, with an estimated USD1.5 billion flowing into the space during the month.

Oliver Schupp, President of Credit Suisse Index Co, LLC, says: "The Dow Jones Credit Suisse Hedge Fund Index fell 0.96% in May, with seven out of ten sectors posting negative performance for the month. Managed Futures experienced the most significant decline, falling 4.44%. Conversely, the Dedicated Short Bias strategy, which includes funds aiming to capitalize on deteriorating stock prices, was the best performing sector for the month, finishing up 2.20%.

"Despite overall negative performance, the industry continued to see inflows with an estimated USD1.5 billion in assets entering the space in May. Total new inflows now total USD28.6 billion year-to-date, bringing overall industry assets to USD1.82 trillion."