Low net exposures in May cut into returns for long/short equity funds, with both U.S. and global funds underperforming the broader equity markets.
The Absolute Return Global Equity Index gained 2.4% in May, taking it to 7.66% year to date. By comparison, the MSCI World Index rose 2.47% to total 8.98% for the year so far.
U.S. long/short funds fared slightly worse, according to the Absolute Return U.S. Equity Index, which was up 1.92% for the month. These funds also underperformed the S&P 500, which reached an all-time high in May, up 3.26% for the month and 7.94%