Median returns flail in May as markets retreat sharply


May turned out to be a very challenging month for Asia-focused long/short equity managers following a sharp retreat in cash equity markets across the region.

Median loss across all types of long/short managers reached 2.99% during the month, a performance that is even more unsettling than the 0.49% median loss in April for the sector.

The deteriorating performance is traced mostly to the long-bias position of most managers despite unsettled market conditions as a result of the European debt crisis overhang.

Indian long/short equity managers performed the worst during the month, delivering a