The Dow Jones Credit Suisse Hedge Fund Index posted negative performance in May, finishing down 0.96%, with three out of ten strategies posting positive performance for the month, according to the company's latest monthly Hedge Fund Index Commentary.

Dedicated Short Bias was the best performing sector in May. The strategy gained 2.20% as managers capitalised on negative momentum across the equity space.

Long/Short Equity funds posted negative performance of -1.68% for the month, but still outperformed long-only benchmarks on both a relative and net exposure-adjusted basis.

Managed Futures reversed from its positive performance in April when it posted a gain of 5.40% and fell in May posting a loss of 4.44% after a pullback in commodities.