Financial Times – Hedge funds took their share of damage in last month’s market turmoil, losing more than 1 per cent on average in May, according to Hedge Fund Research.
The biggest losers were funds specialising in emerging markets, while debt-related funds recorded gains approaching 1 per cent.
Emerging markets funds lost 4 per cent in May, according to HFR. The MSCI emerging markets stock index lost almost 11 per cent in dollar terms.
In spite of bearing the brunt of recent sell-offs and rising volatility, emerging markets funds remain the best performing class of hedge funds this year, with gains of 10.7 per cent against anindustry average of 6.7 per cent, according to HFR.
“As volatility has risen, there has naturally been speculation regarding ‘problem positions’ within the hedge fund community,†said Stephen Dulake, European credit strategist at JPMorgan.
He said that, after emerging markets, equity long-short funds had had the toughest time last month.
