Long/shorts battle to limit downside in brutal May


May was a brutal month for European and global equities, with the MSCI Europe index down by nearly 7% and the MSCI World index off by almost 9%.

A number of European long/short equity funds that had performed well in the first quarter were hurt, with several giving back a substantial chunk of their gains for the year.

Overall, though, the ‘good’ news for the sector as a whole was that many managers managed to limit drawdowns – with the median return finishing the month at -1.94% in euro terms – and a select few even managed to