The Greenwich Composite Investable Index shed 2.18 per cent during May in an extremely difficult market for hedge funds and investors worldwide. 

All Greenwich Investable Indices moved lower on the month, albeit to a lesser extent than the precipitous drop experienced by global equity markets. 

The Greenwich Investable Equity Market Neutral Index was the best performer in May, losing a modest 24 basis points. 

More directional strategies were not as fortunate, as the Greenwich Investable Futures Index lost 3.27 per cent. 

The Long-Short Equity Investable Index also lost 2.61 per cent, its largest loss of the year but a fraction of the ten per cent decline experienced by the MSCI World Equity Index. 

Year-to-date, five of nine Greenwich Investable Index strategies remain positive on the year with event driven and long-short credit leading to the upside, gaining 5.84 per cent and 5.24 per cent, respectively.

“The depth and speed of the correction in May caught market participants by surprise.  Hedge funds did their best to mitigate market risk but managers with even marginal net exposures suffered as a result of the dramatic sell-off. However, the relatively low level of losses in directional hedge fund strategies as compared to global equity returns clearly demonstrates the capital preservation priorities of the hedge fund asset class,” says Clint Binkley, senior vice president at Greenwich.