Hedge funds as measured by the Greenwich Global Hedge Fund Index showed pockets of strength but lost ground on average in May. The GGHFI shed 1.20% compared to global equity returns in the S&P 500 Total Return (-1.13%), MSCI World Equity (-2.45%), and FTSE 100 (-0.89%) equity indices. 36% of constituent funds in the GGHFI ended the month with gains.

Hedge Fund Strategy Highlights:

• Long-Short Credit and Arbitrage funds post best returns on the month
  
• Long-Short Equity funds decline less than 1%
  
• Managed Futures funds suffer from equity and commodity retreat, fall 3.25%
  
• Long-Short Credit and Distressed Securities funds lead hedge funds on year-to-date basis, up 5.03% and 4.24%, respectively
  
• Developed Market funds less impacted from global sell off than Emerging Market funds; the Greenwich Composite Regional indices fall by 1.18% and 1.99%, respectively