Managed futures traders gained 2.08 per cent in May, according to the Barclay CTA Index compiled by BarclayHedge.

Managed futures traders gained 2.08 per cent in May, according to the Barclay CTA Index compiled by BarclayHedge.

Year-to-date, the index remains down 0.54 per cent.

'Commodity markets, led by the energy sector, rallied strongly during the month,' says Sol Waksman, founder and president of BarclayHedge. 'A weakening US dollar provided support to the rally and presented a sustained trend that currency traders could profit from.'

All eight of Barclay's managed futures indices had positive returns in May.

Diversified traders gained 2.61 per cent, financial and metals traders were up 2.43 per cent, discretionary traders rose 2.12 per cent, and systematic traders gained 1.81 per cent.

'Projections of huge budget deficit increases fueled concerns of a deterioration of the creditworthiness of the US and the UK,' says Waksman. 'Hence, short sales of US and European sovereign debt instruments were profitable in May.'

The Barclay BTOP50 Index, which monitors performance of the largest traders, gained 1.34 per cent in May, but is still down 2.49 per cent in 2009.