Hedge funds post best returns in nine years
Hedge funds have posted their best monthly returns in more than nine years for the month of May, with all hedge strategies except dedicated short bias posting positive returns, according to the Credit Suisse/Tremont Hedge Fund Index.
Hedge funds finished up 4.1 per cent in May, with emerging markets the best performing strategy at almost 7 per cent. Increased optimism about commodity prices and global growth contributed to the returns. Convertible arbitrage finished at 5.8 per cent in May due to nearly $6 billion in new convertible bond issuances. Long short equity also returned well at 5.2 per cent, the highest monthly return since June 2000. Global macro posted returns of 1.5 per cent, the seventh consecutive positive monthly return.
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