Event Driven Hedge Funds Advance In May; Best Alpha In 6.5 Years For L/S Funds

Event Driven Hedge Funds comeback but for how long? The hedge funds advance was slight in May, as managers generally delivered positive performance but nonetheless didn’t keep pace with the S&P 500 monthly return. With the S&P total returns index up 1.8% in May, hedge funds returned 0.9%, propriety analysis from Morgan Stanley’s prime brokerage indicates. The HFRI Fund Weighted Composite Index was up 0.4% on the month and the Barclay Hedge Fund index was up 0.78% during May. Event driven hedge funds performed positively while the long end of the Long / Short hedge fund category outperformed at least…