Most GMS funds withstand May’s turmoil with small losses, but not all are unscathed


After the benign conditions of the first quarter May was a brutal month which saw equity markets falling off sharply: the MSCI World index was down 8.63% while the S&P 500 was off 6.01%. On a relative rather than absolute return basis, hedge funds did fairly well, the median for the Global Multi-Strategy sector falling by 0.88% to take year-to-date figures to 1.51%.

Those funds with a large directional equity component – particularly with exposure to Asia and emerging markets, which bore the brunt of the sell-off – were for the most part down on the month, while