Global long/short equity funds had a stellar month in May as stock markets rallied around the world, particularly in emerging markets. Financials turned in particularly strong results as the Federal Reserve Board's stress tests for big banks reassured some investors.
The Absolute Return Global Equity Index gained 4.00% in May, its best month since May 2003, for a return of 8.09% on the year so far. Global equity funds are still well hedged: The strategy underperformed the Standard & Poor's 500 and MSCI World indices, which rose 5.31% and 9.06%, respectively, in May. Many fund managers expect the