« Hedge funds look for better Q4 returns | Main | HNWIs continue to diversify investments »
June 19, 2006
CS/Tremont hedge fund index falls 1.3% in May
The index, which tracks more than 400 managers, is still up 6.4% for the first five months of 2006, Credit Suisse and Tremont Capital Management said on Thursday. In October 2005, the hedge-fund index shed 1.46%.
"After weathering the worst month in almost two years, fears of inflation, continued interest rate increases, and a large drop in consumer confidence, characterized the market climate," Oliver Schupp, president of the Credit Suisse/Tremont Hedge Fund Index, said. "Long/Short equity managers with large net and gross exposures were caught."
The Standard & Poor's 500 Index, lost 2.88% in May, while the FTSE All World Index dropped 3.8%.
Emerging markets funds dropped 5.02% on average in May, while equity long/short managers shed 2.84% and managers focused on futures trading were down 2.7% on average.
"With signs that the Federal Reserve would raise interest rates to contain inflation, emerging markets suffered as investors shunned riskier investments resulting in the worst decline of emerging market assets since 1998," said Robert Schulman, chief executive of Tremont.
Hedge funds focused in short selling did well, making 5.39% on average last month, Credit Suisse and Tremont said.
-MarketWatch-
Posted by su at June 19, 2006 9:51 AM