Pressure builds as equity funds tumble again in euro mayhem


Angela Merkel and Mariano Rajoy
European hedge funds are coming under intense pressure again after another bad month in May, when a renewed eruption of eurozone-related equity market mayhem triggered widespread and substantial losses among long/short funds.

After a strong start to the year, the return of extreme levels of volatility and severe swings in sentiment is threatening to cause a re-run of 2011 – when the very turbulent market environment led to poor hedge fund performance and growing unease among investors.

Overall, the EuroHedge Composite index was down by just 1.1% on a median