Hedge funds lose 2.9% in May
In the worst month since September of 2011, hedge funds posted an average loss of 2.9%. The main cause is the decline in the stock market and the concerns over the European debt crisis. Hedge funds have lost 1.3% since the start of the year. Equities are up only 0.9% worldwide. Managing partner of Agecroft Partners LLC, Don Steinbrugge stated, “It’s very hard for hedge funds across the board to generate positive returns if equities around the world are selling off significantly.” The Bloomberg hedge fund index tracks 2,718 funds. 1,236 funds reported in May. The index had a peak in July 2007, but is down 14% from that point now.
For more information and statistics, see this Bloomberg article.