Event driven was the strongest of the four hedge fund strategies published by Dow Jones Hedge Fund Indexes in May, gaining 1.32 per cent for the month.

Event driven was the strongest of the four hedge fund strategies published by Dow Jones Hedge Fund Indexes in May, gaining 1.32 per cent for the month.

It now sits atop the other strategies for the year with a 4.36 per cent return.

Conversely, equity market neutral posted a loss of 0.73 per cent for the month of May and a 3.44 per cent loss for the year.

The two remaining strategies each nearly broke one per cent gains in May. Merger arbitrage moved into the second spot on a year-to-date basis, gaining 0.90 per cent for the month and 3.26 per cent for 2009.

Equity long/short posted a return of 0.88 per cent for the month, but was down 0.14 per cent for the year.

Convertible arbitrage was suspended on 2 January 2009 and remained suspended through the month of May. Distressed securities was suspended on 4 May 2009 and remains suspended through the month of May.

On a float-adjusted basis, the Dow Jones US Total Stock Market Index, the only broad measure of the domestic equity market, returned 5.29 per cent in May bringing its YTD gain to 4.08 per cent.

The fixed income asset class, as measured by the Dow Jones Corporate Bond Index, gained 4.10 per cent for a cumulative gain of 5.29 per cent for the year.

Finally, the Dow Jones Global Total Stock Market Index, the broadest measure of global equity markets, was up 10.43 per cent for the month giving the index a YTD gain of 11.41 per cent for 2009.