May was a month to forget. The hedge fund industry was down and, with it, funds of funds lost 2.38%. This sharp fall in returns can be attributed to the escalation of the sovereign debt crisis. For the year to date, funds of funds in general were down 0.11%.
For May, the InvestHedge Global Multi-Strategy fund of funds composite was down 2.29%. Asia-Pacific was hit the hardest in May, down 4.14%, and 2.94% for the year to date. Emerging markets followed in hot pursuit, down 2.98% in May and down 1.15% for the year