Although a handful of commodity-focused hedge funds managed to make gains in May, the vast majority came unstuck as the major commodities markets underwent a rapid and dramatic reversal in the early part of the month.
Systematic commodity funds were the worst hit. Global Commodity Systematic lost 13.20%, Armajaro STS Commodities was down 12.83%, and Krom River Commodity Systematic took an 11.80% hit. Armajaro STS remains up 4.86% for the year so far, but Global Commodity Systematic is down 7.39% YTD and the Krom River strategy has lost 1.09%.
Losses were also recorded by discretionary trading funds like