Overall returns from hedge funds were down by 1.08 per cent for the month of May, according to the MSCI Hedge Invest Index. The largest p...

Overall returns from hedge funds were down by 1.08 per cent for the month of May, according to the MSCI Hedge Invest Index. The largest positive contribution this month came from arbitrage funds adding 8 basis points, while the largest negative contribution came from long bias funds with a decline of 34 basis points. Long bias, however, accounted for some 22 per cent of assets invested across the hedge fund universe. Multi-process strategies were also positive with returns of 0.04 per cent, as were short bias strategies at 0.02 per cent, but which accounted for just 1 per cent of invested assets. For the month of May, MSCI's Convertible Arbitrage Index was the best strategy-level performer, gaining 1.11 per cent, and bringing the return since inception to 2.24 per cent. The worst performer for the month was the MSCI Hedge Invest Variable Bias Index which declined by 4 per cent. May's results bring the index's returns to 17.02 per cent since inception in July 2003. MSCI serves as benchmarks for an estimated $3 trillion worldwide including equity, fixed income, multi-asset class, REIT and hedge fund indices.