The Hennessee Hedge Fund Index declined 0.50% in May (+3.20% YTD), while the S&P 500 declined 1.35% (+6.97% YTD), the Dow Jones Industrial Average fell 1.88% (+8.56% YTD), and the NASDAQ Composite Index decreased 1.33% (+6.87% YTD).  

Bonds advanced, as the Barclays Aggregate Bond Index increased +1.31% (+3.04% YTD) and the Barclays High Yield Credit Bond Index advanced +0.49% (+6.01% YTD).

“Most hedge funds lost money in May as risk assets experienced a sharp reversal due to concerns about the global economic recovery.  Commodities took the biggest hit, with silver declining -21% and oil falling -10% during the month,” says Charles Gradante, Co-Founder of Hennessee Group. “Hedge funds were positioned defensively, which allowed them to protect capital during the sell off.  Several managers used the sell off to add to high conviction core positions and reduce illiquid higher beta names.”