Only one of the four hedge fund strategies published by Dow Jones Hedge Fund Indexes posted net-of-fees losses in May 2009.
Considering the high volatility the market has faced in the past 6 months, hedge funds showed only small returns for the month, whether they were positive or negative.
Event driven, the strongest performer for the month has a gain of 1.32% for the month of May, and now sits atop the other strategies for the year with a 4.36% return. Conversely, Equity Market Neutral posted a loss of -0.73% for the month of May and -3.44% for the year.
The two remaining strategies each nearly broke 1% gains in May. Merger arbitrage moved into the second spot on a YTD basis as the strategy gained 0.90% for the month and 3.26% for 2009. Lastly, the Equity long/short has a return of 0.88% for the month, but was down -0.14% for the year.
Convertible arbitrage was suspended on January 2, 2009 and remained suspended through the month of May.
Distressed Securitieswas suspended on May 4, 2009 and remains suspended through the month of May.
|
2009
Net-of-fees Performance |
||
|
May |
1Q |
YTD |
Equity
Long/Short |
0.88% |
-0.62% |
-0.14% |
Equity
Market Neutral |
-0.72% |
-1.89% |
-3.43% |
Event
Driven |
1.32% |
2.05% |
4.36% |
Merger
Arbitrage |
0.90% |
2.64% |
3.26% |
|
|
|
|
Dow
Jones Corporate Bond Index |
4.10% |
-1.87% |
5.29% |
Dow
Jones Global Total Stock Market Index |
10.43% |
-10.28% |
11.41% |
Dow
Jones U.S. Total Stock Market Index |
5.29% |
-10.56% |
4.08% |
|
|
|
|
On a float-adjusted basis, the Dow Jones U.S. Total Stock Market Index,the only broad measure of the domestic equity market, returned 5.29% in May bringing its YTD gain of 4.08%.
The fixed income asset class, as measured by the Dow Jones Corporate Bond Index, gained 4.10% this month for a cumulative gain of 5.29% for the year.
Finally, the Dow Jones Global Total Stock Market Index,the broadest measure of global equity markets, was up 10.43% for the month giving the index a positive YTD gain of 11.41% for 2009.
Note: May 2009 figures for the Dow Jones Hedge Fund Strategy Benchmarks are based on daily estimates net of fees. Final performance figures for May 2009 will be available towards the end of June 2009. The methodology used to calculate the Dow Jones Hedge Fund Strategy Benchmarks is available on www.djhedgefundindexes.com