Hedge funds, as measured by the Dow Jones Credit Suisse Hedge Fund Index, finished May down 1.33%, with four out of 10 strategies in positive territory.

In total, the industry saw estimated outflows of approximately $2.39 billion in May, bringing overall assets under management for the industry to approximately $1.73 trillion;

The Dedicated Short Bias and Fixed Income Arbitrage sectors experienced the largest asset inflows on a percentage basis in May, with inflows of 1.39% and 0.59% from April 2012 levels, respectively;

Long/Short Equity funds experienced a difficult month in May with overall negative performance as global equity markets sold off sharply on renewed sovereign debt issues in the Eurozone along with worsening global macroeconomic data; and

Fixed Income Arbitrage managers posted somewhat positive performance. While interest rate markets showed greater stability during the first months of the year, May saw increased interest rate volatility, spread movement, and more abundant pricing dislocations.