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Hedge Fund Performance Commentary for the Month of May 2012

June 2012

Introduction Hedge funds witnessed their third consecutive month of negative returns in May as global markets registered large declines during the month. The Eurekahedge Hedge Fund Index dropped 1.55% in May but remained in positive territory for the year, up 1.91% May YTD. Comparatively the MSCI World Index shed 9.32% in the same month. All regional mandates finished the month with negative returns, although hedge fund managers across the board were able to control their losses and protect their portfolios. Most region hedge funds remain in positive territory for the year, with North American and Latin American managers leading the pack with gains of 2.66% and 4.27% respectively. May 2012 and April 2012 returns
1.0% 0.5% 0.0% (0.5%) (1.0%) (1.5%) (2.0%) (2.5%) (3.0%) (3.5%) (4.0%) (4.5%) North America Europe Japan Asia ex-Japan Latin America May-12 Eurekahedge Hedge Fund Index

Apr-12 Source: Eurekahedge

The month was marked by heightened risk aversion in the markets due to weak US economic data, intensifying concerns about the European debt crisis and political uncertainty in Europe. Many managers had indicated pessimistic views before May and their positions to that effect led to a significant outperformance of underlying markets by a sizable ...

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